The relationship between actions and cryptographic markets should weaken in the future, the Wall Street Bank Citi (C) said on Monday in a research report.
Although the actions have been and remain the most important macro-pilot of the cryptographic markets, the “correlation of the actions-sympto is likely to fall over time as the class of emerging active ingredients matures, the base of investors increases, Technological progress and adoption are increasing, “said the report.
However, the speculative nature of the markets of cryptocurrencies means that the correlations of risk assets can be swollen, especially during risk events, the bank said.
“A more transparent regulatory regime in the United States will also lead to more idiosyncratic action,” said Alex Saunders analysts.
Bitcoin volatility (BTC) should continue to fall in the long term as institutional adoption increases, the bank said.
Citi noted that crypto was the only asset class whose market capitalization, as a percentage of American shares, increased in last year.
Bitcoin correlation with gold is also worth following because it can be an early sign of the “value store,” added the report.
Read more: Bitcoin prospects are optimistic with prices that should remain high: Deutsche Bank
