Bitcoin now explains only about 50% of return variance across crypto asset sectors, with all tracked categories showing higher annualized volatility than BTC itself, according to a Grayscale research report.
The breakdown by sector reveals significant divergence: Currency assets show 49% annualized volatility (43% attributed to Bitcoin), Smart Contract Platforms at 58% (38%), Finance at 59% (30%), Utilities & Services at 67% (30%), Consumer & Culture at 76% (46%), and AI leading with 85% annualized volatility — with only 35% driven by Bitcoin. Bitcoin's own recent annualized volatility sits at approximately 43%.
Grayscale notes that lower correlation does not equate to lower risk, but the decoupling means half of each sector's returns are driven by factors independent of Bitcoin, offering investors a framework for evaluating which segments provide genuine diversification.
Grayscale: Crypto Sectors Decoupling from Bitcoin, Volatility Exceeds BTC Across All Categories
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