BlackRock's head of digital assets, Robert Mitchnick, said bitcoin market sentiment has shown a clear but subtle improvement over the past month, with the asset's correlation to US stocks weakening—a development he called healthy for the case that bitcoin can serve as a portfolio diversifier and tail-risk hedge. Mitchnick pointed to July's sharp pullback in AI-related stocks, when bitcoin significantly outperformed, as evidence of the decoupling. Bitcoin is still down nearly 30% year-to-date and about 50% from a year ago, but ETF investors have kept buying. US spot bitcoin ETFs recorded $853.5 million in inflows last week, the strongest weekly result since mid-April, according to The Block. BlackRock's IBIT contributed $693.7 million, or more than 80% of the total, while Fidelity's FBTC added $116.4 million. Bloomberg Intelligence analyst Eric Balchunas noted that after the Coldcard vulnerability was disclosed, multiple funds posted daily net inflows, saying it is “hard not to see causality.”
Bitcoin's correlation with US equities is fading, and that is a healthy development for the asset's standing as a portfolio diversifier and tail-risk hedge, according to BlackRock's head of digital assets. Robert Mitchnick said bitcoin market sentiment has shown a clear but subtle improvement over the past month, per a report from The Block.
Mitchnick cited July's sharp pullback in AI-related stocks, when bitcoin significantly outperformed, as evidence of that decoupling. Even with bitcoin down nearly 30% year-to-date and about 50% from a year earlier, ETF investors have kept buying. US spot bitcoin ETFs saw $853.5 million in inflows last week, their best weekly showing since mid-April. BlackRock's IBIT accounted for $693.7 million, or more than 80% of the total, while Fidelity's FBTC added $116.4 million.
Bloomberg analyst Eric Balchunas noted that multiple funds have recorded daily net inflows since the Coldcard vulnerability was disclosed, adding that it is “hard not to see causality.”
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