Robbie Mitchnick, head of digital assets at BlackRock, said Bitcoin should not be considered a "risk asset" and emphasized that its characteristics as a global decentralized asset make it closer to a "safe haven asset." At the same time, PlanB predicts that Bitcoin will reach an all-time high of $1 million by the end of 2025.

The recent correlation between Bitcoin and the US stock market has become stronger and stronger. Whether the Federal Reserve will raise or lower interest rates, the US unemployment rate, inflation, and other economic data have become the focus of crypto investors. Bitcoin currently seems to be more like a risky asset rather than a safe-haven asset. (After all, with the intensifying conflicts between Russia and Ukraine and the Middle East, the attractiveness of gold has increased significantly, reaching the $2,660 mark today, continuing to set a new record high)

BlackRock's head of digital assets: Bitcoin is closer to a "safe haven asset"

But Robbie Mitchnick, head of digital assets at BlackRock, said in an interview with Bloomberg on September 24 that this is a misunderstanding:

Some cryptocurrency research publications and daily commentaries misleadingly label Bitcoin, a clearly risky asset, as a ‘risk asset’ and assume it should trade like a stock.

However, fundamentally, the long-term drivers of Bitcoin are completely different from those of stocks and other so-called risk assets, and sometimes even the opposite.

Overall, Mitchnick believes that Bitcoin is closer to a "safe-haven asset."

He further explained that risky assets generally refer to assets that can maximize returns when economic conditions are good, such as technology stocks, growth stocks, some commodities and many cryptocurrencies. Safe-haven assets are investment tools that perform well during market uncertainty or economic downturns, such assets include gold, silver, government bonds and the US dollar.

Mitchnick noted that Bitcoin has outperformed even the S&P 500 during major geopolitical events:

When we talk about Bitcoin, we primarily think of it as a global currency alternative.

It is a scarce, global, decentralized, non-sovereign asset with no country risk and no traditional counterparty risk. Calling it a risky asset will only confuse investors because it should be considered a safe haven asset based on its characteristics. In reality, only two or three things a year will really affect the fundamental value of Bitcoin.

Currently, BlackRock operates the largest Bitcoin spot ETF, iShares Bitcoin Trust, with a net asset value of $22.9 billion. It is increasingly having a significant impact on the market. Regarding the recent amendment to the ETF requiring the withdrawal of custody assets from Coinbase within 12 hours, Mitchnick said:

Frankly, nothing major has changed here. We are constantly fine-tuning our operations and optimizing our models with Coinbase, just like we do with all other service providers, so this revision is just a routine update reflecting the further development of our crypto ETFs.

BlackRock Bitcoin Report: A Unique Decentralization Tool

In BlackRock’s recent Bitcoin report, the company described Bitcoin as a “unique decentralized instrument” and highlighted its potential as a safe-haven asset against currency and geopolitical risks.

While Bitcoin may move in the same direction as stocks and other risk assets in the short term, over the long term its fundamental drivers are very different, and in some cases the opposite, from most traditional investment assets.

As global markets face rising geopolitical tensions, concerns about U.S. debt and deficit issues, and increased political instability around the world, BlackRock believes Bitcoin may increasingly be viewed as a unique diversification tool for protecting against fiscal, monetary and geopolitical risks facing investors.

PlanB paints a beautiful picture of Bitcoin reaching $1 million by the end of next year

On the other hand, PlanB, a cryptocurrency analyst known for proposing the Bitcoin S2F model and with mixed reputation, predicted in an article published yesterday (24) that Bitcoin will break its all-time high and reach $1 million by the end of 2025.

His argument is based on his assumption that Trump will win the November election, ending the "crypto wars" and driving Bitcoin to an all-time high of $100,000, and that by January 2025, cryptocurrency companies will return to the United States, driving the price of Bitcoin to $200,000.

Next, Trump will start building a strategic Bitcoin reserve in April, driving the price of Bitcoin to $400,000. Then, from July to December, the market will see a "suffocating FOMO" that will eventually push Bitcoin to $1 million.

However, it is clear that most netizens think such predictions are too "optimistic". Crypto trader Mr. Moontastic said: "If these are true, I will run naked on the street."