Bitwise says 60/40 portfolios may be 100% exposed to a dying dollar

Bitwise CIO Matt Hougan says the 60/40 portfolio may be 100% exposed to fiat currency. The portfolio holds 60% stocks and 40% bonds. Hougan says both asset groups are promises priced in dollars. Investors moved a record $7 billion into gold and Bitcoin funds in five days. SPDR Gold Shares received $3.4 billion in the week through August 21. BlackRock's iShares Bitcoin Trust added just over $1 billion. The VanEck Semiconductor ETF lost $1.7 billion during the same period. Bloomberg senior ETF analyst Eric Balchunas called the shift the debasement trade. Balchunas said gold and Bitcoin ETFs recorded their largest five-day inflows. US debt crossed $40 trillion on August 19. The 30-year Treasury yield reached 5.337%, its highest level since 2007. Treasury Secretary Scott Bessent doubled long-bond buybacks to at least $4 billion per operation starting September 9. Markets interpreted the buybacks as a plan to cap yields while deficits remain wide. The US Dollar Index fell to a three-month low near 98.8 on August 21. The euro reached $1.1711, its strongest level since mid-May. By late 2025, gold represented 27% of central-bank reserves and US Treasuries represented 22%, according to European Central Bank figures. Robin Brooks of the Brookings Institution said the buybacks could bring more dollar weakness. Brooks said Bitcoin is not a safe haven like gold and silver. Bitcoin traded near $78,046, up 0.55% in 24 hours. Gold's main ETF was up about 8% in 2026. The iShares Bitcoin Trust remained down roughly 10% for the year. The fund had been down 33% as recently as June. Daily Bitcoin ETF inflows reached $606 million on August 20, the largest single-day total since May 1.