Bitcoin is Creating a New Paradigm for Financial Assets one ⃣ Safe haven asset attribute two ⃣ Risk asset attribute three ⃣ Volatility is decreasing four ⃣ The correlation between the US and American stocks is weakening five ⃣ The correlation with gold is weakening six ⃣ A New Asset Class in Financial History 1. Risk asset attributes of Bitcoin The narrative of inflation hedging: Bitcoin has a limited total quantity (21 million coins) and theoretically possesses anti inflation properties, known as "digital gold"; Not dependent on central institutions: In some geopolitical or sovereign currency crises (such as Venezuela, Lebanon), Bitcoin is seen as a tool for capital flight or wealth preservation. 2. Risk asset attributes of Bitcoin High volatility: The price of Bitcoin fluctuates dramatically, with the possibility of up or down by tens of percentage points in the short term, making it a typical high beta asset. Strong linkage with technology stocks: During macro risk events such as Federal Reserve interest rate hikes and global liquidity tightening, Bitcoin often falls along with the Nasdaq and technology stocks, behaving like a high-risk asset. 3. Trend of volatility changes Bitcoin is considered a highly volatile asset, but this volatility is diminishing. According to research by Fidelity, the volatility of Bitcoin in 2024 is almost half that of 2021, indicating that its market is gradually stabilizing. 4. Correlation with the US stock market According to CryptoQuant's data, the correlation coefficient between Bitcoin and the S&P 500 and Nasdaq indices has remained around 0.8 since August 2024, indicating a strong synchronicity between the two. This trend is particularly evident in early 2025, especially after President Trump announced global trade tariffs and market sentiment shifted towards a "risk averse" mode, leading to a simultaneous decline in Bitcoin and US stocks. Although Bitcoin was highly correlated with the US stock market before, recent data shows that this linkage is weakening. On a trading day in April 2025, the Nasdaq index fell by about 1000 points, while Bitcoin rose by 3.57% to reach $88250, indicating an increased negative correlation between Bitcoin and the US stock market. In addition, VT Markets' analysis suggests that Bitcoin has broken through $90000 despite poor performance on NASDAQ, indicating a shift in its correlation with traditional assets. 5. Correlation with gold Between 2022 and 2024, there is a strong positive correlation between the price trends of Bitcoin and gold. During this period, the price of gold increased by 67%, while the more volatile Bitcoin rose by nearly 400%. By 2025, this synchronicity will begin to weaken. As of the end of March, the price of gold has risen by 16%, while Bitcoin has fallen by over 6%. Yesterday, Bitcoin surged while gold began to decline. This change indicates that the correlation between Bitcoin and gold is weakening. 6. Summary Bitcoin possesses both risk and safe haven properties, with its volatility gradually decreasing and its correlation with the US stock market/gold weakening, making it a new asset class in financial history. Are you still buying Bitcoin? BTC Bitcoin Crypto Macroeconomic Asset Allocation Financial Transformation