Early in the report, Bloomberg Intelligence notes institutional involvement and declining volatility in bitcoin versus traditional risk assets seems to show a clear divergence in favor of bitcoin, allowing investors to separate from the common pitfalls of traditional assets.
The report further illustrates bitcoin’s divergence as a standard risk-asset by comparing it to the year-to-date numbers to May 3 for the Nasdaq 100 Stock Index.
However, bitcoin seems to be deviating from the central banks policy decisions indicating a mild bear-market when compared to historical bear-markets.
While the report does state another expected leg-down as the Federal Reserve has only just begun the tightening process, Bloomberg Intelligence points to “HODL behavior,” which shows more addresses and new addresses alike are holding their bitcoin.