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 News Matrixport released a chart today saying that in Wall Street's view, Bitcoin's ideal position 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, the volatility of Bitcoin continues to decline, which has attracted more institutional attention. For institutional investors with limited risk appetite, stability is often more important than growth. Only when the risk of an asset is sufficiently controllable can it be included in the asset portfolio.
The decline in volatility and the decoupling from the US stock market are increasing the attractiveness of Bitcoin for institutional allocation. Driven by these two structural changes, Bitcoin is gradually transforming from a high-risk asset to a new asset class that is more in line with institutional prudential standards.