Having 5% Bitcoin alongside your 7% Gold/Silver means your total "alternative" allocation is 12%.
For a 2026 portfolio, this is remarkably disciplined. You are currently feeling the pain of a double-crash, but from a structural standpoint, you are positioned better than most. Here is how to handle the Bitcoin portion of your portfolio right now:
You are at the "Institutional Sweet Spot"
Most 2026 financial models (including those from Morningstar and BlackRock) suggest that 5% is the critical threshold for Bitcoin.
• The Logic: At 5%, Bitcoin provides enough "juice" to boost your total returns during bull runs, but a 20% crash (like we are seeing now) only shaves about 1% off your total portfolio.
• The Verdict: You aren't over-exposed. You are holding the "standard" amount for a modern, diversified investor.
Comparison: Why the 12% Total Hedge Matters
• Gold/Silver (7%): Your defense. It protects against a total dollar collapse or geopolitical war.
• Bitcoin (5%): Your offense. It protects against the "debasement" of currency and bets on future tech.
Together, these two assets are fighting the same enemy: Inflation and Debt. Because they are both crashing at once due to the "Warsh Shock," it feels like your hedge is failing. In reality, this is a liquidity flush—big players are selling everything to cover their bets.
