Grayscale’s head of research Zach Pandl said U.S. household equity allocations reached a record 46.71% by the end of 2025, while elevated valuations and unusually high market concentration are strengthening the case for crypto assets as a diversification tool. He said Bitcoin’s 90-day correlation with the Nasdaq 100 fell from above 60% to about 33%, while its correlation with gold rose from near zero to more than 50%. Pandl said the crypto market has emerged from a prolonged downturn with valuations, leverage and bullish positioning all reduced, creating a market structure that contrasts sharply with equities. Grayscale added that diversification benefits depend on differences in asset performance, while noting that Bitcoin has historically been more volatile than stock indexes and has not consistently acted as a safe-haven asset. BlackRock previously said a 1% to 2% Bitcoin allocation may suit some long-term portfolios, but warned that larger allocations could raise overall risk because of volatility.