{"id":129228,"date":"2025-05-14T12:24:51","date_gmt":"2025-05-14T12:24:51","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129228"},"modified":"2025-05-14T12:24:51","modified_gmt":"2025-05-14T12:24:51","slug":"bitcoin-more-of-a-diversifier-than-safe-haven-asset-report","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129228","title":{"rendered":"Bitcoin more of a \u2018diversifier\u2019 than safe-haven asset: Report"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin\u2019s fluctuating correlation with US equities is raising questions about its role as a global safe-haven asset during periods of financial stress.<br \/>\nBitcoin (BTC) exhibited a strong negative correlation with the US stock market when analyzing the short-term, seven-day trailing correlation, according to new research from blockchain data provider RedStone Oracles, shared exclusively with Cointelegraph.<br \/>\nBitcoin, S&amp;P 500, 7-day rolling correlation. Source: Redstone OraclesHowever, RedStone said that the 30-day indicator signals a \u201cvariable correlation\u201d between Bitcoin price and the S&amp;P 500 index, with the correlation coefficient ranging from -0.2 to 0.4.<br \/>\nThis fluctuating correlation suggests that Bitcoin \u201cdoesn\u2019t consistently function as a true hedge for equities\u201d due to its lack of a strong negative correlation below -0.3, which is needed for \u201creliable counter movement during market stress,\u201d the report said.<br \/>\nBitcoin, S&amp;P 500, 30-day rolling correlation, 1-year chart. Source: Redstone OraclesRelated: $1B Bitcoin exits Coinbase in a day as analysts warn of supply shock<br \/>\nThe research suggests that while Bitcoin may not be a dependable hedge against stock market declines, it offers value as a portfolio diversifier.<br \/>\nThis fluctuating dynamic signals that Bitcoin often moves independently from other assets, potentially offering additional returns while other assets are struggling. Still, Bitcoin has yet to mirror the safe-haven dynamics of gold and government bonds, RedStone suggests.<br \/>\nRelated: Nasdaq-listed GDC plans to buy Bitcoin and TRUMP memecoin for $300M<br \/>\nBitcoin needs to \u201cmature\u201d before decoupling from stock market<br \/>\nWhile Bitcoin is poised to grow into a safe-haven asset in the future, the world\u2019s first cryptocurrency still needs to \u201cmature\u201d as a global asset, according to Marcin Kazmierczak, co-founder and chief operating officer at RedStone.<br \/>\n\u201cBitcoin still needs to mature before decoupling from stock markets,\u201d Kazmierczak told Cointelegraph, adding:<br \/>\n\u201cIncreased institutional adoption will absolutely help \u2014 we\u2019re already seeing this effect with corporate treasury investments reducing Bitcoin\u2019s 30-day volatility and with BlackRock repetitively praising BTC as an asset in a portfolio.\u201d<br \/>\nMeanwhile, Bitcoin will see growing recognition as a portfolio diversifier, with an annualized return of over 230% for the past five years, which \u201csignificantly outperformed\u201d both stocks and traditional safe-haven assets, Kazmierczak said, adding that \u201ceven a small 1\u20135% Bitcoin allocation can meaningfully enhance a portfolio\u2019s risk-adjusted returns.\u201d<br \/>\nSource: Vetle\u00a0LundeMeanwhile, Bitcoin\u2019s declining volatility supports BTC\u2019s growing maturity as a global financial asset. Bitcoin\u2019s weekly volatility hit a 563-day low on April 30, a development that may signal more stable price action.<br \/>\nBitcoin\u2019s price volatility fell below the realized volatility of the S&amp;P 500 and the Nasdaq 100, signaling that investors are increasingly treating Bitcoin as a long-term investment vehicle, Cointelegraph reported on May 13.<br \/>\nMagazine: Uni students crypto \u2018grooming\u2019 scandal, 67K scammed by fake women: Asia Express<a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-stock-correlation-safe-haven-portfolio-diversifier?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin\u2019s fluctuating correlation with US equities is raising questions about its role as a global safe-haven asset during periods of financial stress. Bitcoin (BTC) exhibited a strong negative&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129228"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129228"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129228\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129228"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}