Bitcoin’s correlation with US equities remains elevated at approximately 72%, yet emerging signs of decoupling from major indices like the S&P 500 are being observed.
Simultaneously, Bitcoin’s volatility has decreased significantly, enhancing its attractiveness within diversified portfolios by aligning better with institutional risk requirements.
This shift occurs against a backdrop of US stock markets hovering near record highs, a trend Bitcoin’s price action has lagged.
The notable reduction in Bitcoin’s volatility meets the stringent risk parameters favored by professional investors.
Despite maintaining significant correlation with equities, these developments underscore Bitcoin’s maturing potential as an institutional portfolio holding.