Grayscale says BTC’s influence on crypto sectors is weakening

Bitcoin’s influence on price moves across individual crypto sectors is declining, while sector-specific divergence is increasing, according to a Grayscale analysis. Volatility was highest in the AI sector at 85%, followed by consumer and culture at 76%, utilities and services at 67%, finance at 59%, smart contract platforms at 58%, and currencies at 49%. Bitcoin-related factors accounted for only 30% to 46% across those sectors. Grayscale said Bitcoin’s own recent influence was around 43%, lower than in every sector covered by the analysis. Grayscale said lower correlation between Bitcoin and altcoins does not mean investment risk has fallen. The firm added that because idiosyncratic factors in individual sectors have a significant effect on price swings, those differences could serve as a gauge for assessing the real benefits of portfolio diversification.