BlackRock Senior Executives Believe Bitcoin’s Long-Term Value is Solid, Market Misunderstandings and Macroeconomic Fluctuations Should Not Affect Its Positioning as “Digital Gold”
(Background: BlackRock CEO Warns: Market Underestimates Inflationary Pressures from Trump, Fed May Not Be Able to Cut Rates)
(Additional Context: The Panama Canal is Truly Controlled by the U.S! BlackRock Acquires Li Ka-Shing’s Port Company “Hutchison Whampoa” for $22.8 Billion)
Robert Mitchnick, Head of Digital Assets at the world’s largest asset management firm BlackRock, recently spoke with CNBC’s Squawk Box and stated that Bitcoin should not be viewed as a risky asset. He criticized certain comments within the crypto industry that have exacerbated market misconceptions about Bitcoin.
He emphasized that Bitcoin possesses qualities such as “globality, scarcity, non-sovereignty, and decentralization,” which set it apart from traditional high-risk investment categories.
Industry Narrative Influences Market Perception
Mitchnick pointed out that recent market reactions to Bitcoin’s volatility stem in part from exaggerated portrayals of its risk attributes within the industry, leading to misguided perceptions among investors. He explained:
“This phenomenon is actually a result of self-inflicted harm within the industry, with many comments depicting Bitcoin as a risky asset, but that does not align with its true nature.”
Furthermore, he dismissed the claim that a U.S. economic recession would affect Bitcoin’s price as “baseless.” On the contrary, he suggested that a recession might serve as a catalyst for Bitcoin. He elaborated:
“Tariff policies may not necessarily be negative for Bitcoin, and if the economy truly enters a recession, this could actually strengthen Bitcoin’s value as a safe-haven asset.”
Bitcoin’s Digital Gold Value Remains Unchanged
Regarding the macroeconomic variables that have drawn external attention, Mitchnick acknowledged that high-interest-rate environments could affect Bitcoin’s price, but noted that this situation is the same as that faced by traditional assets such as the stock market. He emphasized:
“Bitcoin’s core value remains unchanged, and the trend of the market viewing it as digital gold continues.”
Looking ahead, he believes that Bitcoin’s positioning as a “global, non-sovereign” asset will continue to attract capital inflows, particularly in an economic environment marked by increased uncertainty, where investors may be more inclined to use it as a hedge.
ETF Driving Institutional Capital Inflows
Since November 2023, Bitcoin’s price has risen by approximately 15%. Mitchnick believes that 2024 will be a “historic year” and stressed that the market’s recognition of Bitcoin’s long-term value is leading to its gradual acceptance as “digital gold.”
In early 2024, U.S. regulators approved a spot Bitcoin ETF, driving institutional investor inflows. As of now, the total assets under management for Bitcoin ETFs have reached $100 billion, with BlackRock’s iShares Bitcoin Trust (IBIT) holding approximately $46.5 billion, setting a record as the fastest to surpass $10 billion in assets in ETF industry history.
