Banking Giant Citi's Weakness Forecast for Bitcoin: Idiosyncratic Period Begins - Coin Bulletin

Citi has turned heads with its stunning prediction about Bitcoin and altcoins.

In its research report released on Monday, Citi predicted that the relationship between stock and crypto markets will weaken in the future.

Although the report states that stocks are still the most important macroeconomic factor in the cryptocurrency markets, it is expected that over time the correlation between stocks and cryptocurrencies will decrease with the maturation of the cryptocurrency markets, the expansion of the investor base, the advancement of technology, and the increase in adoption.

However, it was emphasized that the speculative nature of the crypto markets could increase correlations among risky assets, especially during times of risk aversion. Citi analysts said, “A more transparent regulatory regime in the US will also lead to more idiosyncratic price movements.”

Citi expects Bitcoin volatility to continue to decrease in the long term as institutional adoption increases. In addition, it was noted that crypto markets were the only asset class that increased their market share compared to the market capitalization of US equities last year, ****.

The report also noted the need to monitor Bitcoin's correlation with gold, which could be an early sign of its 'store of value' use case.