BlackRock Executive Outlines Bitcoin Pricing Model Amid Market Uncertainty
Jay Jacobs, BlackRock’s US Head of Equity ETFs, stated that Bitcoin should be viewed as an uncorrelated asset that thrives during global uncertainty. He noted a low long-term correlation of 2-3% between Bitcoin and US tech stocks, emphasizing that Bitcoin's appeal increases when traditional equities face stress.
- Bitcoin was priced under $94,000, reflecting a 150% increase since spot-ETF approvals last year.
- Jacobs linked Bitcoin's price behavior to investor flows towards hard assets amid rising global uncertainty, highlighting significant inflows into both gold and Bitcoin ETFs.
- BlackRock's iShares Bitcoin Trust (IBIT) experienced a record net creation of $643 million on April 23, raising its assets to approximately $54 billion.
- Central banks are diversifying away from dollar holdings, with gold purchases exceeding 1,044 tonnes in 2024, indicating a shift toward alternative assets like Bitcoin.
- BlackRock manages a record $11.6 trillion in assets, influencing market valuation models that prioritize scarcity and sanction-resistance over traditional financial metrics.
- As IBIT accumulates more Bitcoin than miners produce post-halving, Jacobs suggests a growing demand for assets that behave differently from stocks and bonds.
At present, Bitcoin trades at $94,510.
