Important signal! Is Bitcoin becoming the 'new favorite' of institutions?
Matrixport's latest report points out that Bitcoin's volatility has significantly decreased, while its correlation with US stocks has weakened. These two key factors are greatly enhancing its attractiveness to institutional investors. What does this mean? — Wall Street whales may be quietly positioning themselves, and a new bull market is about to erupt!
Declining volatility: The key threshold for institutional entry has been breached!
Bitcoin's historically high volatility has been the main reason for traditional funds' hesitation, but recent data shows that BTC's 30-day volatility has dropped to its lowest point since 2020. This stability is comparable to gold, which is the 'ballast' for institutional asset allocation. Once volatility enters a comfortable range, giants like BlackRock and Fidelity are likely to accelerate their accumulation, and a liquidity flood may ignite the market!
Decoupling from US stocks: The era of Bitcoin's 'independent market' has arrived!
In the past, Bitcoin was often seen as a 'risk asset', following the ups and downs of US stocks. However, recent on-chain data indicates that the correlation between BTC and the S&P 500 has dropped below 0.3, reaching a two-year low! This means: Bitcoin is breaking free from the constraints of US stocks, becoming a true 'digital gold'! Once expectations for a Federal Reserve interest rate cut heat up, funds will flood from traditional markets into the crypto space.
Breaking news: These catalysts will boost the bull market!
Continuous inflow of ETF funds: The net inflow of US Bitcoin spot ETFs exceeded $1 billion in a single week, and BlackRock's holdings have surpassed 300,000 BTC!
Halving countdown: Historical data shows that the main upward wave usually begins three months before the halving, and there are less than 60 days left until the halving!
Global central banks are easing: The Bank of Japan ends negative interest rates, the Federal Reserve shifts to a dovish stance, and under expectations of liquidity easing, cryptocurrencies will be the biggest beneficiaries!
Must-read for retail investors: If you don't position now, you may miss the last opportunity to get on board!
The increased attractiveness for institutional allocation means that Bitcoin's 'low-price chips' are being rapidly accumulated. Once institutions complete their positions, the market will enter a 'low-volume uptrend' phase. Remember the story of 2020: After volatility decreased, Bitcoin soared from $10,000 to $69,000! Will history repeat itself?
Action recommendations:
DCA into BTC on dips, focus on February pullback opportunities
Keep an eye on the movements of institutions like Coinbase and MicroStrategy, as they often serve as market barometers.
Advance positioning in halving concept coins (such as BTC ecosystem, Layer 2)
Top support is in place! Pay attention to convergence; all that is missing in convergence is a crazy ambition like yours!