Citi Predicts Decreasing Correlation Between Bitcoin And Stock Market

According to Odaily, Citi's latest research report suggests that the correlation between Bitcoin and the stock market is expected to weaken over the long term as digital asset adoption increases. Citi highlights that while the stock market remains a primary macroeconomic driver for the crypto market, the maturing of the crypto asset market, expansion of the investor base, technological advancements, and increased adoption rates will gradually reduce this correlation. Additionally, clearer U.S. crypto regulations may introduce more market fluctuations driven by non-macro factors. The report also notes that Bitcoin's volatility is anticipated to continue decreasing with the growth of institutional adoption. Furthermore, the correlation between Bitcoin and gold is noteworthy, potentially indicating early signs of its 'store of value' attribute.