According to Robbie Mitchnick, BlackRock’s head of digital assets, Bitcoin has been incorrectly categorized as a “risk-on” asset. In an interview with Bloomberg on September 24, Mitchnick pointed out, “The crypto industry has somewhat shot itself in the foot. Certain publications and daily analyses have taken the inherent risks associated with Bitcoin and concluded that it should behave like equities, which is misleading.”
Mitchnick contends that Bitcoin is more akin to a risk-off asset. He elaborated, “When examining the fundamentals, the long-term drivers of Bitcoin differ significantly from those influencing equities and other so-called risk assets. In certain instances, these influences might even be oppositional.”
In a recently published Bitcoin white paper, BlackRock referred to Bitcoin (BTC) as a “unique diversifier,” emphasizing its potential role as a safeguard against monetary and geopolitical uncertainties. “Our perspective on Bitcoin is that it represents an emerging global alternative to traditional currency,” Mitchnick stated. “It is a scarce, decentralized, non-sovereign asset devoid of country-specific risks and traditional counterparty vulnerabilities.”
Typically, risk-on assets are those that thrive during favorable economic conditions, such as equities, particularly in tech and growth sectors, along with certain commodities and many cryptocurrencies. Conversely, risk-off assets tend to perform better during times of market instability or economic decline, including gold, silver, government bonds, and the US dollar.
Mitchnick noted, “In reality, only a couple of significant events each year tend to affect Bitcoin’s fundamental value.” Currently, BlackRock offers a spot Bitcoin exchange-traded fund (ETF) known as the iShares Bitcoin Trust (IBIT), enabling investors to engage with Bitcoin through a regulated investment platform.
Mitchnick played down a recent revision to the Bitcoin ETF requiring withdrawals from Coinbase, the ETF’s custodian, to occur within 12 hours. “Honestly, there hasn’t been any substantial change,” he remarked. “What we regularly do with Coinbase, like with all our other service providers, is refine our operations and optimize models as we delve deeper into these crypto ETFs. This is merely a routine update as we enhance our processes.”
Meanwhile, crypto analyst PlanB has put forth a speculative scenario predicting that Bitcoin could soar past $1 million. In a post dated September 24 on X, PlanB suggested that if Trump were to win the upcoming election, it could potentially end the “war on crypto” and propel Bitcoin to a new peak of $100,000.
According to PlanB’s projections, crypto firms would start returning to the US by January 2025, driving Bitcoin’s price to $200,000. By April, with Trump building a Bitcoin reserve, the cryptocurrency could reach $400,000, followed by a surge of “face-melting FOMO” from July to December, which would push Bitcoin to the $1 million mark.
However, many commenters on the post expressed skepticism, suggesting that the predictions might be overly optimistic. “If all of this comes true, I’ll run through the streets naked,” quipped crypto trader Mr. Moontastic.
Magazine: Lady of Crypto will be ‘all out of crypto’ by September 2025: X Hall of Flame