Bitcoin's correlation with traditional equity markets is declining as institutional capital flows shift between different investor classes. Data shows sovereign wealth funds, wealth managers, and registered investment advisors are increasing their Bitcoin positions, while macro and multi-strategy hedge funds are reducing exposure.
This divergence in buying and selling activity suggests a structural change in Bitcoin's market dynamics. The entry of long-term institutional investors contrasts with the exit of fast-money trading strategies, potentially stabilizing Bitcoin's price behavior relative to stock market fluctuations.
Sovereign Wealth Funds Drive Bitcoin Buying as Hedge Funds Cut Exposure, Reducing Equity Market Sensitivity
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