Bitcoin Allocation Calculator
See how adding Bitcoin affects your portfolio's risk and return. Powered by J.P. Morgan 2026 Capital Market Assumptions.
Your Current Portfolio
Stocks = MSCI ACWI · Bonds = US Aggregate · Cash = Money Market
Side-by-Side Comparison
| Metric | 0% BTC | 1% BTC | 2% BTC | 5% BTC | 10% BTC | 15% BTC | 20% BTC |
|---|---|---|---|---|---|---|---|
| Expected Return | 6.0% | 6.0% | 6.1% | 6.4% | 6.9% | 7.3% | 7.8% |
| Volatility | 10.6% | 10.7% | 10.7% | 10.9% | 11.6% | 12.5% | 13.7% |
| Sharpe Ratio | 0.268 | 0.276 | 0.283 | 0.302 | 0.324 | 0.336 | 0.340 |
| Est. Max Drawdown | -26.6% | -26.7% | -26.8% | -27.3% | -28.9% | -31.3% | -34.3% |
Max drawdown estimated as 2.5× annual volatility (95th percentile approximation). Highlighted column has the best Sharpe ratio.
Risk-Return Frontier
Each point represents a different Bitcoin allocation (0–20%). The teal dot marks the optimal Sharpe ratio.
Methodology
Expected returns and correlations from J.P. Morgan 2026 Long-Term Capital Market Assumptions (30th edition). Bitcoin assumptions are Portfolio Lab estimates (15% geometric return, 42.5% volatility) informed by published institutional research. Read our methodology.
Sharpe Ratio = (Portfolio Return − Risk-Free Rate) / Portfolio Volatility. Risk-free rate: 3.1% (US Cash, JPM LTCMA).
Max drawdown is a statistical estimate (2.5× annual volatility), not a historical backtest. Actual drawdowns can be larger.
This tool uses forward-looking assumptions, not historical data. Past performance does not guarantee future results.
Read the full analysis: How Much Bitcoin Should Be in Your Portfolio?
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