Matrixport: Bitcoin is gradually transforming from a high-risk asset to a new asset class that is more in line with institutional prudential standards

Odaily Planet Daily News Matrixport released today's chart saying that in the eyes of Wall Street, Bitcoin's ideal positioning is as a "non-correlated asset" - an asset that can be used to hedge against the volatility of traditional assets and can be recommended to institutions with confidence. However, in reality, its correlation with US stocks is still as high as 72%. Although there are signs of decoupling between the two assets recently, the background is that US stocks have repeatedly hit new highs, while Bitcoin has underperformed the S&P 500. On the other hand, Bitcoin's volatility continues to decline, which has attracted more institutional attention. For institutional investors with limited risk appetite, stability is often more important than gains - only when the risk of an asset is sufficiently controllable can it be included in the asset portfolio. Declining volatility and decoupling from US stocks are increasing Bitcoin's attractiveness to institutional allocation. Driven by these two structural changes, Bitcoin is gradually transforming from a high-risk asset to a new asset class that better meets institutional prudent standards.