Editor's PiCK
BlackRock: Bitcoin (BTC) Decoupling from Tech Stocks... Not Holding Could Be a Risk
Summary
- BlackRock has analyzed that Bitcoin's correlation with tech stocks is weakening.
- Bitcoin is being noted as a safe haven asset by institutional investors and could become an essential portfolio asset.
- Eric Balchunas conveyed that Bitcoin will be perceived as 'digital gold' among institutions.
BlackRock, the world's largest asset manager, has analyzed that the correlation between Bitcoin and U.S. tech stocks is weakening, and it is being noted as a safe haven asset by some investors.
According to DL News, a cryptocurrency specialist media, Robbie Mitchnick, head of digital assets at BlackRock, said at the 'Token2049' event in Dubai, "If Bitcoin moves like tech stocks, it may not be attractive to institutions," but added, "If its correlation with extreme risk events (Left-tail risk) decreases, it could become an essential portfolio asset for institutions."
He emphasized, "At that point, institutions will perceive it not as an 'asset too risky to buy' but as an 'asset risky not to have.'"
Eric Balchunas, a Bloomberg ETF analyst, also added, "Institutions are now looking for 'digital gold,' and this will be a positive long-term change not only for ETFs but also for Bitcoin itself."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.![[Market] Bitcoin breaks below $68,000 as losses deepen](https://media.bloomingbit.io/PROD/news/3a08fe32-6a33-4a62-bb89-4afb5c5399ca.webp?w=250)
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