BlackRock Says Bitcoin's Link to U.S. Equities Is Fading as Sentiment Ticks Up
AI Market Summary
BlackRock highlights improving Bitcoin sentiment alongside weakening correlation to U.S. equities, reinforcing the diversification and tail-risk hedge narrative. Strong U.S. spot BTC ETF inflows ($853.5m last week), led by BlackRock's IBIT, signal persistent institutional demand despite weak longer-term performance. Reported inflows even after a Coldcard vulnerability disclosure suggest investor focus remains on regulated ETF access rather than custody headlines.
Impact level
● High
Affected assets
BTC/USDT-1.42%
AI Insight · BTC/USDTAI Insight
▲ Bullish
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BlackRock's head of digital assets Robert Mitchnick said Bitcoin sentiment has improved slightly but noticeably over the past month, while its correlation with U.S. stocks has weakened. He said the shift reinforces the case for Bitcoin as a diversification instrument and a tail-risk hedge.
Mitchnick pointed to July's sharp pullback in AI-related shares, during which Bitcoin materially outperformed, as an example of this decoupling.
Bitcoin is down nearly 30% year to date and about 50% from a year ago, yet ETF demand has remained resilient. U.S. spot Bitcoin ETFs drew $853.5 million of net inflows last week, the strongest weekly tally since mid-April. BlackRock's iShares Bitcoin Trust (IBIT) accounted for $693.7 million, more than 80% of the total, while Fidelity's Wise Origin Bitcoin Fund (FBTC) added $116.4 million.
Bloomberg analyst Eric Balchunas said several funds posted daily net inflows after the Coldcard vulnerability was revealed, adding that "it's hard not to see a causal relationship."
