BlackRock, the world's largest asset manager, has published a report on the features that differentiate Bitcoin from other asset classes.
BlackRock analysts emphasized that Bitcoin is not only a “unique diversifier” within a portfolio, but also an asset that many investors “have difficulty comparing to traditional assets.”
The report noted that Bitcoin’s correlations with US stocks or Fed interest rates are short-lived.
Bitcoin has become a safe haven for some
One of the main things that makes Bitcoin’s performance and price difficult to predict is that it has “little fundamental correlation” to the macro factors that affect most traditional assets, according to BlackRock. It noted that despite being a “risky” asset, Bitcoin has outperformed all other major asset classes in 7 out of the last 10 years.
BTC has had its worst performance in the last three years. “These movements in Bitcoin price reflect how its potential for adoption as a global alternative currency has changed,” BlackRock said.
The report said that Bitcoin’s perceived insulating nature from global macro factors has made it a “safe haven” for some investors against geopolitical tensions, and that Bitcoin could provide investors with protection against a weakening U.S. dollar, according to BlackRock.
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