Grayscale: Crypto Sectors Show Lower Bitcoin Correlation and Higher Volatility

According to ChainCatcher citing Crypto Briefing, a Grayscale research report says crypto assets are becoming less correlated with Bitcoin, which now explains about 50% of return volatility across crypto sectors. Annualized volatility and the share attributed to Bitcoin were 49% and 43% for currencies, 58% and 38% for smart contract platforms, 59% and 30% for finance, 67% and 30% for utilities and services, 76% and 46% for consumer and culture, and 85% and 35% for artificial intelligence. Bitcoin’s own annualized volatility was about 43% recently, below that of every sector tracked by Grayscale. The report says lower correlation does not mean lower risk; sector-specific factors drive the other half of returns, offering investors a way to assess potential diversification.