Bitcoin (BTC) has not responded to Wall Street’s demands, BlackRock executive warns

Jakarta, Pintu News – In a recent interview with Yahoo Finance, Robbie Mitchnick, Global Head of Digital Assets at BlackRock, expressed his views on Bitcoin’s recent price stagnation. Despite high hopes for regulatory developments and pro-crypto policies from the White House, Bitcoin (BTC) remains hovering around the mid-$80,000 range in early 2025, raising questions about what will trigger the next price increase.

Is Bitcoin (BTC) Considered Less Valuable?

Mitchnick acknowledged that Bitcoin (BTC) is starting to show significant strength towards the end of 2024. “Bitcoin (BTC) is still up, let’s say 15% since the beginning of November,” he said. This rise has been driven by a combination of institutional interest and optimism for the government support that the Trump administration might provide.

However, he warned that “accelerated, perhaps overly premature expectations about how soon some of these catalysts will start to have an impact” may have contributed to the recent price stagnation. According to Mitchnick, many investors and traders expected a price spike immediately following the pro-crypto move from the White House. When the increase did not materialize, some short-term participants began to reduce their positions, which contributed to the downward pressure on Bitcoin (BTC) prices.

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BlackRock’s Role in the Bitcoin (BTC) Market

BlackRock has been in the spotlight with their Bitcoin (BTC) exchange-traded fund, which is credited with bringing a new wave of institutional exposure to the crypto market. However, Mitchnick revealed that inflows have weakened: “The year 2024 was incredible, quite historic in this area. The beginning of 2025 has seen more outflows-relatively moderate in the context of the overall asset base, which is close to $100 billion.”

He attributes this decline mainly to hedge funds cutting back on spot-futures arbitrage trades that had “double-digit yields” in 2024 but have since dropped to single-digit figures. Mitchnick emphasized that these outflows were mainly from short-term traders, not from the more traditional “buy-and-hold” investor base.

Bitcoin (BTC) as a ‘Safe Haven’

The main question raised in the interview is why Bitcoin (BTC) is not acting as a safe haven, similar to gold, despite continued economic uncertainty. While gold has experienced gains due to investors’ concerns about the economy, Bitcoin (BTC) has not followed the same trajectory.

Mitchnick suggests that this discrepancy stems from market psychology and what he calls “short-term correlation spikes.” “Bitcoin (BTC) basically in the long run… should be uncorrelated or even inversely correlated to some risk factors… But now this has been extrapolated to things that make absolutely no sense – tariffs, economic fears – and the market commentary doesn’t reflect what Bitcoin (BTC) really is,” Mitchnick said.

Conclusion

Although speculation continues to grow as to whether governments will start hoarding Bitcoin (BTC), Mitchnick emphasized that the broader institutional and wealth advisory community continues to accumulate positions. These investors, in his view, remain “very enthusiastic” about current market conditions despite the recent downturn.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Bitcoinist. Bitcoin Price Ignores Wall Street Demand for BlackRock. Accessed on March 21, 2025
• Featured Image: Bitcoin Sistemi