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Matrixport: Decreasing Bitcoin Volatility and Decoupling from US Stocks Increasing Institutional Attractiveness
Summary: Matrixport released a daily analysis stating that on Wall Street, Bitcoin is ideally positioned as an uncorrelated asset, suitable for hedging traditional asset volatility and recommended for institutional allocation. However, in reality, its correlation with US stocks remains as high as 72%. Despite recent signs of decoupling between the two assets, the backdrop is that ...
Matrixport released a daily analysis stating that on Wall Street, Bitcoin is ideally positioned as an uncorrelated asset, suitable for hedging traditional asset volatility and recommended for institutional allocation. However, in reality, its correlation with US stocks remains as high as 72%. Despite recent signs of decoupling between the two assets, the backdrop is that US stocks continue to hit new highs while Bitcoin lags behind the S&P 500. On the other hand, the decreasing volatility of Bitcoin is attracting more institutional attention. For risk-averse institutional investors, stability is often more important than gains, and only when asset risks are sufficiently manageable can they be included in portfolios. Decreasing volatility and decoupling from US stocks are increasing the institutional attractiveness of Bitcoin. Driven by these two structural changes, Bitcoin is gradually transitioning from a high-risk asset to a new asset category that better aligns with institutional prudent standards.
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Link: Matrixport: Decreasing Bitcoin Volatility and Decoupling from US Stocks Increasing Institutional Attractiveness [Copy]
