Bitcoin has been inaccurately categorized as a “risk-on” asset, according to Robbie Mitchnick, the head of digital assets at BlackRock.
In a recent interview with Bloomberg on September 24, Mitchnick remarked, “The crypto industry has experienced a bit of an own goal. Certain research publications and daily commentaries have taken the fact that Bitcoin is undeniably a risky asset and concluded that it should behave like equities.”
Robbie Mitchnick argues that Bitcoin resembles a risk-off asset more closely. Source: Bloomberg
He further explained, “When you analyze it fundamentally, the long-term drivers for Bitcoin differ significantly from those steering equities and other so-called risk assets. In some instances, these drivers may even be inversely related.”
In a newly published Bitcoin white paper, BlackRock describes Bitcoin (BTC) as a “unique diversifier,” emphasizing its potential role as a hedge against monetary and geopolitical risks.
“When we consider Bitcoin, we see it as an emerging alternative global currency,” Mitchnick stated. “It is a scarce, decentralized, non-sovereign asset that carries no country-specific risk and lacks traditional counterparty risk.”
Typically, risk-on assets refer to those that yield maximum returns during favorable economic conditions, such as technology and growth stocks, certain commodities, and many cryptocurrencies. Conversely, risk-off assets thrive during periods of market volatility or economic downturns, including gold, silver, government bonds, and the United States dollar.
Bitcoin has outperformed the S&P 500 during significant geopolitical events. Source: BlackRock
Mitchnick noted, “In reality, there are probably just two or three events each year that meaningfully affect Bitcoin’s fundamental value.”
BlackRock currently offers a spot Bitcoin exchange-traded fund (ETF) known as iShares Bitcoin Trust (IBIT), which enables investors to invest directly in Bitcoin through a regulated vehicle.
He downplayed a recent update to the ETF that mandates withdrawals from Coinbase, its custodian, within 12 hours. “Honestly, nothing of great significance has changed here,” Mitchnick asserted. “What we continually do with Coinbase, like with all our service providers, is to fine-tune and optimize our operational models as we navigate these crypto ETFs. This is simply a standard update as we refine our processes,” he explained.
In a related note, crypto analyst PlanB recently shared a bold prediction suggesting that Bitcoin could reach an astonishing $1 million by the end of 2025.
In a post on X dated September 24, PlanB outlined a scenario where a Trump victory in the upcoming election would end the “war on crypto,” potentially pushing Bitcoin to a new high of $100,000.
According to his hypothesis, by January 2025, crypto firms would start returning to the U.S., boosting Bitcoin’s price to $200,000. Following that, Trump would begin to establish a strategic Bitcoin reserve in April, leading to a peak of $400,000, and sparking “face-melting FOMO” between July and December that could send Bitcoin soaring to $1 million.
Many commenters expressed skepticism about the prediction, with one crypto trader, Mr. Moontastic, humorously stating, “If all of this comes true, I’ll run naked in the streets.”
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