Grayscale says crypto sectors are drifting away from Bitcoin’s orbit

New research finds Bitcoin explains only about half of the return variation across crypto sectors, with volatility ranging from 49% to 85%

New research from Grayscale suggests that crypto assets are becoming less correlated with Bitcoin. In a report released November 12, 2026, the firm said Bitcoin now accounts for only about half of the variation in returns across crypto sectors.

What Grayscale found

The report is part of Grayscale’s research series called “The Stack.” It was written by Zach Pandl, Grayscale’s Head of Research, and Charlie Perkins, CFA, a Research Associate at the firm.

The central finding is about how much Bitcoin drives everything else. According to the authors, Bitcoin explains roughly 50% of the return variation across crypto sectors. The report also says pairwise correlations between sectors have decreased.

The research breaks down annualized volatility by sector. Grayscale estimated how much of each sector’s swings can be attributed to Bitcoin-related factors:

Currencies: 49% annualized volatility, with 43% attributed to Bitcoin-related influences.

Smart Contract Platforms: 58% annualized volatility, with 38% tied to Bitcoin.

Financials: 59% annualized volatility, with 30% tied to Bitcoin.