BlackRock sees subtle shift in Bitcoin sentiment as diversification thesis gains traction

ChainThink reported on Aug. 11, citing The Block, that BlackRock's Head of Digital Assets Robert Mitchnick said Bitcoin market sentiment has shifted "noticeably but subtly" over the past month, with Bitcoin gradually decoupling from U.S. equities. Mitchnick said the earlier rally in AI stocks, alongside Bitcoin's relatively flat performance, briefly worked against the decoupling narrative. When AI-related shares sold off sharply in July, Bitcoin materially outperformed U.S. equities. He described the renewed separation as healthier, noting some investors increasingly treat Bitcoin as a portfolio diversifier and a hedge against tail risks in other assets. On 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 drew $693.7 million, more than 80% of the category's net inflows. Fidelity-related ETFs added $116.4 million, roughly 13%. Mitchnick added that spot Bitcoin ETF investors remain largely fundamentals-driven and are primarily long-term holders. He also pointed to Bitcoin's history of five major bull and bear cycles, with each cycle ending at a significantly higher price than the prior one, though marked by pronounced volatility.