The Single Cryptocurrency I Would Choose for My Portfolio

Key Points

• Bitcoin is emerging from one of its strongest August performances and may be positioned for a year‑end rally.

• Over the past decade, Bitcoin has shown exponential growth, regularly delivering triple‑digit returns.

• Because it exhibits little correlation with traditional asset classes, Bitcoin serves as a distinctive portfolio diversifier.

Heading into the final quarter of 2026, crypto investors face difficult decisions as they seek to diversify their holdings.

Should they increase exposure to Hyperliquid (CRYPTO: HYPE), which has risen 236% this year and garnered backing from the Trump administration? Alternatively, they might consider another high‑performing altcoin that could benefit from the passage of the Digital Asset Market Clarity Act.

Or they could choose a proven performer that is experiencing a modest dip in 2026 — down about 9% — namely Bitcoin (CRYPTO: BTC), which is coming off a strong August and could be set for a year‑end rally.

Upside potential and downside protection

What distinguishes Bitcoin from other cryptocurrencies is its combination of upside potential and downside protection. As BlackRock recently noted, Bitcoin has a unique duality: it is both a “risk‑on” and a “risk‑off” asset.

In terms of upside potential, all you have to do is look at the numbers over the past decade. Bitcoin has delivered truly exponential gains over that time period. On Sept. 1, 2016, Bitcoin was trading at just $572. Today, it trades at just under $80,000.

Bitcoin has consistently delivered triple‑digit returns over a sustained period. In fact, the outlier years are the ones when Bitcoin does not double in value. Case in point: In six of the past 10 years, Bitcoin has delivered returns of 92% or higher. No wonder Bitcoin’s price growth has been off the charts.

Image source: Getty Images.

In terms of downside protection, Bitcoin can serve as a unique portfolio diversifier. As BlackRock points out, Bitcoin has historically been uncorrelated with major asset classes. That has made it a phenomenal hedge, because Bitcoin can zig when other assets zag.

In addition, Bitcoin has proven its worth as a safe‑haven asset during periods of extreme geopolitical and macroeconomic instability. For good reason, many investors think about Bitcoin as “digital gold.” As former Fed Chair Jerome Powell has noted, Bitcoin could be a modern form of gold that can (theoretically) preserve its value over time.

How high can Bitcoin go?

Right now, Bitcoin is trading at just under $80,000. But plenty of investors think it could reach $100,000 this year. And, from there, the sky is the limit. Investment firm Bernstein, for example, thinks Bitcoin will hit $150,000 by mid‑2027 and $300,000 by 2029.

Others have far loftier targets. For example, Cathie Wood of Ark Invest is convinced that Bitcoin could be trading above $1 million by the end of 2030.

With that in mind, Bitcoin is the one cryptocurrency that’s at the top of my investment shopping list right now. It has a unique mix of upside potential and downside protection that can help it outperform in nearly any type of market environment.

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