Citi has suggested that the relationship between the stock market and cryptocurrency markets is likely to weaken in the future as the crypto market matures and technology advances. The bank believes that as the investor base grows and adoption progresses, the correlation between equities and crypto will fall. However, Citi also noted that the speculative nature of crypto markets means that risk asset correlations may be inflated, especially during risk-off events. The bank expects Bitcoin volatility to continue to fall in the long term as institutional adoption increases. Additionally, Citi highlighted that crypto was the only asset class that saw its market cap as a percentage of US equities grow last year. The report also mentioned the importance of tracking Bitcoin's correlation to gold as it may indicate its potential as a store of value.



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