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Matrixport: Falling Bitcoin volatility and decoupling from U.S. stocks are increasing the institutional attractiveness of Bitcoin

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2025-07-02 07:05:20
According to a daily analysis published by Matrixport, in the eyes of Wall Street, Bitcoin is ideally positioned as a "non-correlated asset", which can be used to hedge against the volatility of traditional assets and can be safely recommended to institutions for allocation. However, in reality, its correlation with US stocks is still as high as 72%. Although there are some signs of decoupling between the two assets recently, it is against the background that US stocks have repeatedly reached new highs, while Bitcoin has underperformed 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 sufficiently controllable can it be included in the asset 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.
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