BlackRock has recommended Bitcoin, gold, and alternative strategies as effective portfolio diversifiers amid rising correlations between stocks and bonds. In a report released on May 6, the asset management giant highlighted the diminishing role of bonds as diversifiers since 2020, suggesting that alternative assets could mitigate portfolio risk without sacrificing potential gains. The report noted that Bitcoin and gold have shown low correlations with traditional markets, with Bitcoin's correlation to the S&P 500 at 0.53 and gold's at 0.19 from 2022 to early 2026. BlackRock emphasized that combining Bitcoin and gold could enhance diversification benefits due to their low mutual correlation of 0.10. The firm suggested a 1% to 2% Bitcoin allocation for multi-asset investors, cautioning that higher allocations could increase portfolio risk. The report also mentioned that Bitcoin's unique diversification potential stems from its distinct long-term return drivers, which are influenced by factors such as monetary and geopolitical stability. Despite a recent 2% drop, Bitcoin was trading near $79,900, reflecting broader market trends.