[Analysis] "Bitcoin is a Portfolio Diversification Asset, Not a Safe Haven Asset"

An analysis has emerged suggesting that Bitcoin (BTC) is closer to a portfolio diversification asset rather than a safe haven asset.

According to Cointelegraph on the 14th (local time), blockchain data analysis firm RedStone Oracles reported that "Bitcoin has not shown a stable hedge relationship with the stock market," and "since the 30-day moving correlation coefficient between Bitcoin and the S&P500 does not remain below -0.3, it is difficult for Bitcoin to play a definite safe haven role in a declining market." According to the data, the current 30-day moving correlation coefficient between Bitcoin and the S&P500 shows an irregular flow ranging between -0.2 and 0.4.

Furthermore, "Nevertheless, Bitcoin can sufficiently serve as a 'diversification tool' in portfolio composition," and "if Bitcoin is included in a portfolio, additional returns can be expected." Considering that Bitcoin's return over the past five years has recorded an annual average of 230%, it is explained that the risk-reward ratio can increase significantly.

However, the possibility of becoming a safe haven asset in the future was also raised. Marcin Kazmierczak, co-founder of RedStone, predicted, "The holding of Bitcoin by institutional investors is contributing to reducing the volatility of the 30-day correlation," and "as institutional investment expands, the safe haven assetization of Bitcoin will accelerate."