Bitcoin News Update: Institutions Favor Equities Over Bitcoin, Highlighting the Cryptocurrency's High-Volatility Vulnerability
- Wintermute analysis reveals Bitcoin's heightened correlation with the NASDAQ-100 during downturns, showing negative skew as institutional funds shift to equities. - Bitcoin's 18% decline vs. NASDAQ's 3.7% gain since Fed rate cuts highlights "high-beta tail" behavior, with ETF outflows and weak derivatives markets exacerbating weakness. - Anchorage Digital partners with BOB to offer $250M in Bitcoin DeFi yields, while RockToken introduces structured crypto investment plans targeting retail and retirement
The relationship between Bitcoin and the NASDAQ-100 index has
The company linked this imbalance to a broader movement of US dollar risk preference away from crypto and into stocks in 2025.
At the same time,
Interest from institutions in crypto remains inconsistent.
On the other hand, the wider crypto sector continued to experience heavy selling.
The shifting market landscape—from equity-driven risk appetites to new institutional frameworks—highlights Bitcoin’s changing significance in global investment portfolios. As volatility endures, both investors and companies are adjusting their approaches to better manage risk, returns, and compliance.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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