BlackRock's Mitchnick bets on Bitcoin's risk-off hedge near $80,000

BlackRock’s chief crypto strategist, Mark Mitchnick, said on Thursday that Bitcoin’s risk‑off narrative is “the one to bet on” over the long term as the digital asset consolidates near $80,000. Mitchnick’s comment came amid a steady stream of inflows into newly approved spot exchange‑traded funds (ETFs), which have helped lift the price and reduce Bitcoin’s correlation with the stock market. The rally has reached a level that many analysts view as a new baseline for the asset.

The shift to a risk‑off view matters because it signals a broader change in how investors treat Bitcoin. For years the cryptocurrency was seen primarily as a speculative play, its price moving in lockstep with equity volatility. Recent data show that the correlation between Bitcoin and major stock indices has fallen below 0.3, a sharp decline from the 0.7‑0.8 range seen during the 2017 boom. Spot ETF approvals in the United States and Europe have also made it easier for institutional money to flow directly into Bitcoin, bypassing the need for custodial wallets or futures contracts. This institutional uptake has added a layer of stability that was absent when Bitcoin was largely traded on retail exchanges.

Bitcoin’s price has hovered around $80,000 for the past few weeks, with the last week’s gains driven largely by new ETF inflows of roughly $200 million. Analysts note that the asset’s volatility has also eased, with the 30‑day average dropping from 70% to 55% since the ETF launch. Mitchnick highlighted that the risk‑off environment—characterized by tightening monetary policy and concerns over inflation—has pushed investors toward assets that can act as a hedge. Other market watchers, such as JPMorgan and Goldman Sachs, have echoed the view that Bitcoin’s declining correlation with equities makes it a useful diversification tool.

Looking ahead, the next key driver will be regulatory clarity. The U.S. Securities and Exchange Commission is still reviewing several spot ETF proposals, and any approval or denial could sway investor sentiment. Meanwhile, the Federal Reserve’s upcoming policy meeting will set the tone for risk appetite across all markets. If the Fed signals a more dovish stance, Bitcoin could see renewed inflows and a push above $90,000. Conversely, a hawkish stance could tighten the risk‑off narrative, leading to a temporary pullback. In either case, the consolidation near $80,000 sets the stage for a critical test of Bitcoin’s resilience as a long‑term hedge.