Citi: In the long term, the correlation between the cryptocurrency market and the stock market will weaken

According to CoinDesk, Wall Street bank Citigroup (Citi) stated in its latest research report that as digital asset adoption grows, the correlation between Bitcoin and the stock market is expected to weaken over the long term.

Citi pointed out that although the stock market remains a major macro driver of the crypto market, with the maturation of the crypto asset market, expansion of investor base, technological advancements and increased adoption, there will be a gradual decline in correlation between stocks and crypto assets. In addition, further clarification of US cryptocurrency regulation could lead to more non-macro factor driven market volatility.

The report also mentioned that Bitcoin's volatility is expected to continue declining under conditions of growing institutional adoption. At the same time, it's worth noting Bitcoin’s correlation with gold which may be an early signal for its "store-of-value" attribute.