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Bitcoin viewed as a risk-off asset by Blackrock digital chief

Bitcoin viewed as a risk-off asset by Blackrock digital chief

GrafaGrafa2024/09/25 03:30
By:Liezl Gambe

Robbie Mitchnick, Blackrock’s head of digital assets, shared his views on Bitcoin (CRYPTO:BTC), labeling it a “risk-off” asset despite its recent correlation with U.S. stocks.  

In an interview with Bloomberg, Mitchnick compared Bitcoin to traditional safe-haven assets like gold, citing its decentralized nature and limited supply as distinguishing factors.  

“You would base it as risk-off,” Mitchnick explained, emphasizing that Bitcoin’s long-term behavior mirrors that of gold, despite short-term correlations with equities.  

Mitchnick further explained that although Bitcoin has been moving in tandem with U.S. equities recently, this pattern is temporary.  

He drew parallels between Bitcoin and gold, which show similar trends over time, particularly in their long-term correlation patterns.  

“Gold shows a lot of the same patterns,” Mitchnick noted, adding that Bitcoin’s decentralized structure and scarcity set it apart from other risk-on investments like stocks and high-yield bonds.  

Bitcoin’s strong performance this year, with a 49% increase, has been fueled partly by the approval of Bitcoin ETFs.  

Meanwhile, Ether (CRYPTO:ETH) has seen a 15% rise, though it still lacks the institutional backing that Bitcoin enjoys.  

Mitchnick pointed out that Ether’s value is tied to the adoption of applications built on the Ethereum network, but it has yet to achieve the same perceived stability as Bitcoin.  

Blackrock’s engagement with Bitcoin continues to grow, with the success of its iShares Bitcoin Trust (IBIT) reinforcing the asset’s potential.  

Launched in January, IBIT quickly became the largest Bitcoin ETF globally.  

Even Blackrock CEO Larry Fink has shifted his stance, now referring to Bitcoin as “digital gold” and a “legitimate financial instrument,” reflecting the increasing institutional acceptance of the cryptocurrency.  

At the time of writing, the Bitcoin price was $64,561.12.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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