The relationship between stocks and crypto markets is likely to weaken the future, Wall Street Bank Citi (C) said in a research report Monday.
While the equals have become and remain the most important macro drivers of crypto markets, the “equity-crypto correlation is likely to fall over time as the nascent asset class grows older, the investor’s base grows, growing Technology and adoption are emerging, “the report said.
However, the imaginary nature of cryptocurrency markets means that the correlations of risk can be exaggerated, especially at risk events, the bank said.
“A more transparent US regulation regulation will also lead to more idiosyncratic price actions,” written by analysts led by Alex Saunders.
Bitcoin (Btc) Volatility is expected to continue to fall in the long run as the institution’s adoption grows, the bank said.
Citi noted that crypto is the only kind of owner of the market cap, as a percentage of US equality, grew last year.
Bitcoin’s relationship with gold is also worth monitoring as it may be an early signing of the “Store of Value Use Case,” the report added.
Read more: Bitcoin’s view is bullish with prices expected to remain elevated: Deutsche Bank
