"Bitcoin is pioneering a whole new paradigm of financial assets"
1⃣Safe-haven asset attributes
2⃣Risk Asset Attributes
3⃣ Volatility is decreasing.
The correlation with the US stock market is weakening.
The correlation with gold is weakening.
6⃣ A brand new asset class in financial history
1. The risk asset attributes of Bitcoin
The narrative of inflation hedging: Bitcoin has a limited supply (21 million coins) and theoretically possesses anti-inflation properties, referred to as "digital gold";
Decentralized: In certain geopolitical or sovereign currency crises (such as in Venezuela or Lebanon), Bitcoin is seen as a tool for capital flight or wealth preservation.
2. The risk asset attributes of Bitcoin
High volatility: Bitcoin prices fluctuate dramatically, potentially rising or falling by dozens of percentage points in a short period, a typical high Beta asset.
Strong correlation with tech stocks: During macro risk events (such as Federal Reserve interest rate hikes and global liquidity tightening), Bitcoin often falls alongside the Nasdaq and tech stocks, behaving like a high-risk asset.
3. Volatility Change Trend
Bitcoin is considered a highly volatile asset, but this volatility is diminishing. According to a study by Fidelity, the volatility of Bitcoin in 2024 is nearly half of that in 2021, indicating that its market is gradually stabilizing.
4. Correlation with US Stocks
According to CryptoQuant data, since August 2024, the correlation coefficient between Bitcoin and the S&P 500 and Nasdaq indices has remained around 0.8, indicating a strong synchrony between the two. This trend was particularly evident in early 2025, especially after President Trump announced global trade tariffs, which shifted market sentiment to a "risk-averse" mode, causing Bitcoin to decline in tandem with U.S. stocks.
Although Bitcoin was previously highly correlated with U.S. stocks, recent data shows that this correlation is weakening. On a trading day in April 2025, the Nasdaq index fell by about 1,000 points, while Bitcoin rose by 3.57%, reaching $88,250, indicating an increased negative correlation between Bitcoin and U.S. stocks.
In addition, analysis from VT Markets indicates that Bitcoin has broken through $90,000 despite poor performance on Nasdaq, suggesting that its correlation with traditional assets is changing.
5. Correlation with Gold
From 2022 to 2024, the price trend of Bitcoin showed a strong positive correlation with gold. During this period, the price of gold increased by 67%, while the more volatile Bitcoin rose by nearly 400%.
By 2025, this synchronicity began to weaken. As of the end of March, the price of gold had risen by 16%, while Bitcoin had fallen by more than 6%. Yesterday, Bitcoin surged, while gold started to decline. This change indicates that the correlation between Bitcoin and gold is weakening.
6. Summary
Bitcoin simultaneously has both risk and hedging properties, its volatility is gradually decreasing, and its correlation with U.S. stocks/gold is weakening, becoming a brand new asset class in financial history.
Is everyone still buying Bitcoin?
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