How To Price Bitcoin? BlackRock Exec Explains
Bitcoin is viewed as an uncorrelated asset that thrives in uncertain conditions, according to BlackRock’s Jay Jacobs. He stated that Bitcoin's long-term correlation with US tech stocks is only about two to three percent. Factors that boost equities, such as higher growth and lower geopolitical risk, contrast with those that benefit Bitcoin, which flourishes amid uncertainty. Bitcoin's price was near $94,000, having risen approximately 150% since spot-ETF approvals. Significant inflows into Bitcoin and gold ETFs indicate a shift towards hard assets as investors seek alternatives. BlackRock’s iShares Bitcoin Trust (IBIT) saw a record $643 million in net creations recently, reflecting this trend. Central banks are diversifying away from the dollar, with gold purchases exceeding 1,044 tonnes in 2024. Jacobs linked these movements to geopolitical fragmentation and the rise of alternative assets like Bitcoin. BlackRock manages $11.6 trillion and promotes a valuation model for Bitcoin based on scarcity and sanction-resistance. At press time, Bitcoin traded at $94,510.
