"The Decoupling of Virtual Assets and Stock Markets Expected to Weaken... Volatility to Decrease with Regulatory Clarity"

An analysis has emerged suggesting that the coupling phenomenon between virtual assets (cryptocurrencies) and the stock market is expected to weaken.

According to CoinDesk on the 4th (local time), CitiBank stated in a report that "the stock market is one of the important macro factors for the virtual asset market," but also noted that "as the adoption of virtual assets increases and the market matures, the coupling relationship is likely to weaken."

Furthermore, it predicted that "once U.S. regulations become clear, virtual assets will move based on individual factors rather than macroeconomic ones," and that "in the case of Bitcoin (BTC), institutional adoption will increase, leading to decreased volatility."

However, the report added that "if risk aversion sentiment grows, the coupling of the two assets could temporarily strengthen," due to the speculative nature of the virtual asset market.