Matrixport: Bitcoin is gradually transitioning from a high-risk asset to a new asset class that better meets institutional prudential standards

In Wall Street's view, bitcoin is ideally positioned as an "uncorrelated asset" - an asset that can be used to hedge against the volatility of traditional assets and can be safely recommended to institutions, according to Matrixport's analysis of daily icons. However, in reality, its correlation with US stocks is still as high as 72%. Although there have been some recent signs of decoupling between the two assets, it is set against the backdrop of US stocks hitting new highs and Bitcoin underperforming the S & P 500.
On the other hand, Bitcoin's volatility has continued to decline, but it has attracted the attention of more institutions. For institutional investors with limited risk appetite, stability is often more important than growth - only when the risk of the asset is manageable enough to be included in the portfolio.
Lower volatility and decoupling from US equities are increasing the institutional attractiveness of bitcoin as it transitions from a risky asset to a new asset class better aligned with institutional prudential standards.