BlackRock digital assets head Robert Mitchnick said Bitcoin market sentiment has undergone a "noticeable but subtle" shift over roughly the past month, with the asset increasingly trading independently from U.S. equities. He said the divergence began earlier this year, when AI-related stocks surged while BTC lagged, a setup that was initially unfavorable for Bitcoin. That relationship looked different in July, however, when AI stocks saw a sharp pullback and Bitcoin outperformed the broader stock market.
Mitchnick said he views the decoupling as a healthy development. In his view, many investors increasingly treat Bitcoin as a diversification tool within portfolios and, in some cases, as a hedge against tail risks facing other assets. He also said the investor base in spot Bitcoin ETFs remains dominated by fundamentally driven, longer-term holders rather than short-term traders.
On fund flows, U.S. spot Bitcoin ETFs posted net inflows for five straight trading sessions last week, totaling about $853.5 million, the strongest weekly showing since mid-April. BlackRock’s IBIT accounted for $693.7 million, or more than 80% of total net inflows, while Fidelity’s related ETF brought in $116.4 million, roughly 13% of the total.
On Aug. 11, BlackRock digital assets head Robert Mitchnick said Bitcoin market sentiment has seen a "noticeable but subtle" change over roughly the past month.
Mitchnick said Bitcoin has been gradually decoupling from U.S. stocks since earlier this year. At first, that divergence worked against Bitcoin, as AI stocks rallied while BTC traded flat. He said the pattern shifted in July, when AI stocks pulled back sharply and Bitcoin materially outperformed U.S. equities.
BlackRock sees the divergence as a healthy signal
Mitchnick said the decoupling is healthy because many investors view Bitcoin as a diversification tool in a portfolio. He added that it may also be used to hedge tail risks tied to other assets.
He also said investors in Bitcoin ETFs are still largely fundamentals-driven and skew toward longer-term holders.
U.S. spot Bitcoin ETFs logged $853.5 million in net inflows last week
On flows, U.S. spot Bitcoin ETFs recorded net inflows for five consecutive trading days last week, totaling about $853.5 million. That marked the strongest weekly performance since mid-April.
BlackRock’s IBIT brought in $693.7 million, accounting for more than 80% of all net inflows into spot Bitcoin ETFs. A related ETF from Fidelity saw net inflows of $116.4 million, or about 13% of the total.
Mitchnick says Bitcoin remains highly volatile across cycles
Mitchnick said Bitcoin has historically been highly volatile and has so far gone through five major boom-and-bust cycles. At the end of each cycle, he said, the price was clearly higher than in the previous one, even though the path included sharp swings.
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