Bitcoin is still a great way to diversify portfolio even if it trades like a tech stock, analyst says

Greg Cipolaro, global head of research at NYDIG, contends that Bitcoin's recent tendency to move in tandem with U.S. equities, like the S&P 500, does not negate its value as a portfolio diversifier. While correlations have risen, Cipolaro states that equities explain only about a quarter of Bitcoin's price changes, with the rest driven by crypto-specific forces like capital flows and regulatory developments. He attributes the current price alignment to the macro backdrop, not a structural merger of asset classes, as both Bitcoin and growth stocks react to liquidity and risk appetite. Furthermore, Cipolaro addressed debates sparked by investors like Chamath Palihapitiya and Ray Dalio questioning Bitcoin's role as a reserve asset, arguing that the focus has shifted from survival to institutional standards. He maintains that Bitcoin's long-term growth does not hinge on central bank adoption, deriving its value instead from its decentralized network, political neutrality, and censorship-resistant properties.

(Source：CoinDesk)