Bitcoin’s correlation with US equities is under scrutiny as a safe-haven asset during financial stress, revealed by new research from RedStone Oracles. The short-term 7-day correlation between Bitcoin and the US stock market is notably negative, while the 30-day indicator shows a variable correlation. The report suggests Bitcoin lacks a strong negative correlation essential for a reliable counter movement during market stress, making it more of a diversifier than a hedge against equities. Despite this, Bitcoin’s independent movements from other assets make it a valuable portfolio diversifier, offering additional returns during market struggles. The cryptocurrency is yet to exhibit the safe-haven features of gold and government bonds, as per RedStone’s analysis. RedStone’s COO Marcin Kazmierczak believes Bitcoin needs to mature further to decouple from stock markets, with increased institutional adoption playing a crucial role. Bitcoin’s declining volatility and impressive annualized returns over the past five years contribute to its growing recognition as a diversifier, outperforming stocks and traditional safe-haven assets. The decreasing volatility signals Bitcoin’s maturity as a global financial asset, with its weekly volatility hitting a 563-day low on April 30. The declining price volatility compared to traditional indices indicates investors’ increasing view of Bitcoin as a long-term investment. For more in-depth insights into the cryptocurrency market, subscribe to our DeFi Newsletter.