Matrixport: Bitcoin Is Gradually Transforming from a High-Risk Asset to a New Asset Class Better Aligned with Institutional Prudence Standards

According to a report by Jinse Finance, Matrixport's daily chart analysis notes that, from Wall Street's perspective, the ideal positioning for Bitcoin is as a "non-correlated asset"—one that can be used to hedge against traditional asset volatility and confidently recommended to institutions as a portfolio allocation. However, in reality, its correlation with U.S. equities remains as high as 72%. Although there have been signs of decoupling between the two assets recently, this has occurred against a backdrop of U.S. stocks repeatedly hitting new highs, while Bitcoin has underperformed the S&P 500. On the other hand, Bitcoin's volatility has continued to decline, which has attracted increased attention from institutions. For institutional investors with limited risk appetite, stability is often more important than returns—only when asset risk is sufficiently manageable can it be considered for inclusion in a portfolio. The decline in volatility and the decoupling from U.S. equities are enhancing Bitcoin's appeal as an institutional allocation. Driven by these two structural changes, Bitcoin is gradually transitioning from a high-risk asset to a new asset class that better aligns with institutional prudence standards.