Bitcoin's fluctuating correlation with US equities raises questions about its role as a safe-haven asset, according to new research by RedStone Oracles. The study indicates Bitcoin has shown a strong negative correlation with the US stock market in the short term, but a variable correlation in the longer term. This inconsistency suggests Bitcoin does not reliably hedge against stock market declines. However, the report highlights that Bitcoin can still add value as a portfolio diversifier. It has achieved an annualized return of over 230% over the past five years, outperforming traditional assets. Experts believe that Bitcoin still needs to mature to fully decouple from stock markets, and increasing institutional adoption may enhance its stability and appeal. Recent declines in Bitcoin's volatility further hint at its growth as a long-term investment, supporting its potential as a diversifier within investment portfolios.

Source 🔗