Aaron Brown, Columnist

Bitcoin Is Earning Its Place in a Balanced Portfolio

This redemption rally shows that even skeptical investors should accept that it’s safer to have a small allocation to the cryptocurrency than to ignore it.

December 8, 2023 at 10:00 AM UTC

By Aaron Brown

Aaron Brown is a former head of financial market research at AQR Capital Management. He is also an active crypto investor, and has venture capital investments and advisory ties with crypto firms. He is the author of the soon-to-be-released "Wrong Number."

Bouncing back.
Photographer: Stefani Reynolds/AFP via Getty Images

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It should be no surprise that Bitcoin sold for over $44,000 this week, more than double its March 13 price. Going back to 2014, it has taken the cryptocurrency an average of nine months and 21 days to double; the milestone came 28 days early this time.

What is mildly surprising is that Bitcoin doubled without ever falling below its March 13 low. On average, it has dropped 27% between doublings (that is, if it starts from $1,000, it drops to $730 before trading above $2,000) and it has dropped as much as 83% (trading for $170 before going to $2,000).