Grayscale Report: Crypto Sectors Diversify from Bitcoin, Exhibit Higher Volatility

ChainCatcher report, according to Crypto Briefing: A Grayscale research study shows that the correlation between crypto assets and Bitcoin is declining, with Bitcoin now accounting for only about 50% of return volatility across the crypto sector. The report breaks down annualized volatility and the percentage attributable to Bitcoin by sector: - The currency sector has an annualized volatility of 49%, with 43% attributable to Bitcoin. - The smart contract platform sector has an annualized volatility of 58%, with 38% attributable to Bitcoin. - The finance sector has an annualized volatility of 59%, with 30% attributable to Bitcoin. - The utility and services sector has an annualized volatility of 67%, with 30% attributable to Bitcoin. - The consumer and culture sector has an annualized volatility of 76%, with 46% attributable to Bitcoin. - The AI sector has the highest annualized volatility at 85%, with only 35% attributable to Bitcoin. The study notes that Bitcoin’s own annualized volatility has recently been around 43%, and all sectors tracked by Grayscale exhibit higher volatility than Bitcoin. The report suggests that lower correlation does not imply lower risk; however, since Bitcoin explains only half of the return volatility, the other half is driven by sector-specific factors—providing investors with insight into which sectors may offer genuine diversification.