Bitcoin has been wrongly categorized as a “risk-on” asset, says Robbie Mitchnick, BlackRock’s head of digital assets.
In a recent Bloomberg interview, Mitchnick argued that the crypto industry has misinterpreted Bitcoin’s risk profile, comparing it to stocks in a way that oversimplifies its behavior.
He explained:
Some crypto publications have taken Bitcoin’s inherent riskiness and stretched it to mean it’s a ‘risk-on’ asset like equities.
But, he argues, Bitcoin’s long-term drivers differ from stocks and traditional risk assets—sometimes moving in the opposite direction.
Bitcoin’s market drivers differ from equities
BlackRock’s new white paper describes Bitcoin as a “unique diversifier,” offering protection against monetary and geopolitical risks.
Mitchnick highlighted that Bitcoin is a decentralized, non-sovereign asset with no country-specific or counterparty risks.
He said:
It’s confusing to call it risk-on when its fundamentals suggest it’s more like a risk-off asset.
Risk-on assets typically thrive in favorable economic conditions, like tech stocks and certain commodities. In contrast, risk-off assets, such as gold and government bonds, perform better in uncertain times.
Bitcoin, he stressed, does not align with these definitions.
BlackRock calls Bitcoin a hedge, not a risk-on asset
Mitchnick also addressed concerns over a recent change to BlackRock’s iShares Bitcoin Trust (IBIT) ETF, requiring 12-hour withdrawals from Coinbase, its custodian. He downplayed the update, calling it routine optimization.
“Nothing significant has changed,” he said, adding that such tweaks are standard as the ETF evolves.
Bold prediction: Bitcoin to hit $1 million by 2025?
Meanwhile, the crypto community buzzes with a daring prediction from analyst PlanB.
He suggests Bitcoin could hit $1 million by the end of 2025, outlining a scenario where Trump wins the US election, ends the “war on crypto,” and drives Bitcoin to $100,000.
By 2025, he predicts, Bitcoin could climb to $400,000 before a surge in investor FOMO pushes it to $1 million.
While many find this forecast overly optimistic, it has certainly sparked discussion.
According to Coin Telegraph, one crypto trader said, “If this happens, I’ll run naked in the streets.”
Amid all the hype, Mitchnick remains focused on the fundamentals, reiterating that Bitcoin’s true value lies in its potential as a hedge rather than a speculative risk-on play.
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