- Bitcoin’s volatility declines, attracting institutional interest.
- Matrixport sees Bitcoin as a non-correlated asset.
- Bitcoin transforming into an asset meeting institutional standards.
Bitcoin’s shift toward institutional adoption has gained traction following a Matrixport report on July 2, spotlighting its declining volatility and evolving role as a non-correlated asset.
The decline in Bitcoin’s volatility aligns with growing institutional interest, positioning it as a potential hedge against traditional asset volatility.
Bitcoin’s Growing Institutional Appeal Amid Lower Volatility
Matrixport’s analysis identifies Bitcoin as an increasingly viable asset for institutional portfolios due to its recent decoupling from U.S. stock market trends and historically high correlation. Wall Street’s perception of Bitcoin as a non-correlated asset is challenged by its substantial 72% correlation with U.S. stocks during market stress, though signs of decoupling have emerged.
Bitcoin’s declining volatility further boosts its attractiveness. Institutional investors are drawn to reduced risks, with Bitcoin gradually meeting prudential standards. These changes support Bitcoin’s potential transformation into an asset class better suited for institutional preferences.
Community reactions have been mostly favorable, highlighting Bitcoin’s evolving market dynamics. No major statements from Wall Street figures or Bitcoin’s key opinion leaders directly reference the Matrixport report, but discussions around its volatility and institutional role continue on social media and professional platforms. Arthur Hayes, Former CEO of BitMEX, remarked, “Structural shifts in Bitcoin’s volatility regime signal its rising role in institutional portfolios.”
Bitcoin’s Price Dynamics and Expert Perspectives
Did you know? In 2020, Bitcoin displayed negative correlation with equities, but spiked correlations during macro shocks like COVID, reflecting collective market behavior changes.
According to CoinMarketCap, Bitcoin (BTC) holds a market cap of $2.13 trillion, maintaining a market dominance of 64.73%. Its current price stands at $107,169.68 with trading volume increasing by 11.84% in the past 24 hours. Over 90 days, its price rose by 28.58%, showcasing substantial recovery.
Insights from Coincu’s research team indicate the possibility of Bitcoin’s volatility decline continuing, further enticing institutional players. Regulatory clarity has improved Bitcoin’s appeal for formal portfolios. Market data supports this shift in sentiment towards Bitcoin as a stable portfolio component.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/346389-matrixport-report-bitcoin-institutional-shift/