Bitcoin has long been seen as a highly volatile asset, especially when global financial markets experience significant fluctuations. However, according to Robert Mitchnick – the head of BlackRock's digital asset division, the way the cryptocurrency industry communicates about Bitcoin has inadvertently exacerbated its risk reputation.


Is Bitcoin Really a Risk Asset?

In an interview on #CNBC , Mitchnick argued that Bitcoin is labeled as a risk asset partly due to how the crypto industry promotes it. However, in reality, Bitcoin has very distinct characteristics compared to traditional financial assets like stocks:


  • Global and scarce: Only a total of 21 million Bitcoins will ever exist.

  • Decentralized and not owned by any country: No government or organization fully controls Bitcoin.


However, instead of highlighting these advantages, many studies in the industry continue to promote the view that $BTC is a "risk-on" asset – meaning a high-risk investment, like stocks.


Bitcoin ETF – A Historic Turning Point

The approval of spot Bitcoin ETFs by U.S. regulators at the beginning of 2024 has made it easier for institutional investors to access Bitcoin. Notably, #BlackRock⁩ – one of the largest asset management firms in the world – has led this wave.



  • BlackRock's Bitcoin ETF (IBIT) is currently managing $46.5 billion – accounting for nearly half of the total $100 billion in Bitcoin ETF assets.


  • IBIT reached $10 billion the fastest in the history of the ETF industry (32 years).



The strong participation of major financial institutions has helped drive the price of Bitcoin to a record high of over $108,000 by the end of 2024. However, the price of BTC then fell over 20% due to concerns about President $TRUMP 's tax policy and the risk of an economic recession in the U.S.


Does Economic Policy Really Affect Bitcoin?

According to Mitchnick, forecasts about Bitcoin are negatively influenced by economic policies that are not entirely rational:



  • Trump's tariffs: There is no clear evidence that this is detrimental to Bitcoin.


  • Recession risk: If the U.S. economy falls into recession, Bitcoin could become a safe haven asset, like gold.


  • Rising interest rates: If interest rates rise, Bitcoin may be affected, but other asset types like stocks are also not immune to this impact.



Despite short-term volatility, Bitcoin has increased by about 15% since the beginning of November 2024. This reinforces the belief among many investors that Bitcoin is not just a risk asset, but can also serve as "digital gold" in the long run.


Bitcoin: Reflecting on a Historic Year

Mitchnick concluded that 2024 was a memorable year for Bitcoin and the cryptocurrency industry as a whole. He believes that the long-term growth of Bitcoin will continue, despite concerns about risks from macroeconomic factors.


So is Bitcoin really a risk asset, or is it simply an asset that has not been properly valued? The answer is likely to be debated for many years to come. #anhbacong