Key takeaways
- Bitcoin explains only 30%–46% of crypto sector variation
- AI cryptocurrency sector volatility reaches 85% annually
- Declining correlations create opportunities alongside significant investment risks
Bitcoin no longer explains most of the price movements across several major cryptocurrency sectors, according to new research from Grayscale, suggesting that the digital asset market is becoming increasingly diversified despite continued volatility.
In its November 12 Beyond Volatility report, the asset manager found that Bitcoin accounted for approximately 30%–46% of return variation across six cryptocurrency sectors over the past three years.
Bitcoin Explains Just 30% of DeFi and Infrastructure Returns
Grayscale examined the FTSE…
