• 34ºc, Sunny

Citi: The long-term correlation between the crypto market and the stock market will weaken

On February 5th, according to CoinDesk, Wall Street bank Citi said in its latest research report that the correlation between bitcoin and the stock market is expected to weaken in the long term as the adoption of digital assets grows. Citi pointed out that while the stock market remains the main macro driver of the crypto market, the correlation between the stock market and crypto assets will gradually decline as the crypto asset market matures, the investor base expands, technology advances and adoption increases. In addition, further clarity on crypto regulation in the United States could lead to more non-macro-driven market volatility. The report also mentions that bitcoin's volatility is expected to continue to decline as institutional adoption grows, while bitcoin's correlation with gold is noteworthy and could be an early sign of its "store of value" properties.