"Bitcoin Must Break Free from Its Correlation with U.S. Stocks"

In order for Bitcoin (BTC), the leading cryptocurrency, to be recognized as an ideal asset class, it must break away from its correlation with U.S. stocks, according to a recent claim.

On the 2nd (KST), Matrixport stated in a report, "For Wall Street to confidently market Bitcoin to institutional investors, Bitcoin needs to become a completely uncorrelated asset from U.S. stocks."

Currently, however, the correlation between Bitcoin and the U.S. stock market stands at 72%, which remains at a high level. Regarding this, the report analyzed, "The correlation between the two assets is gradually decreasing," and, "While the S&P 500 Index is reaching record highs, Bitcoin is lagging behind."

There are also positive signs. As Bitcoin's volatility decreases, institutional investors may start to view it as a safe asset. Matrixport explained, "Lower volatility makes Bitcoin more attractive to institutional investors who have strict constraints regarding risk or volatility," adding, "This recent drop in volatility could become a key factor in encouraging further institutional investment, no less than the decline in correlation."

Meanwhile, as of 4:13 p.m. that day, Bitcoin was recorded at $106,969 on CoinMarketCap, down 0.02% from the previous day.