For years, Bitcoin has been widely labeled as a "risk-on" asset—a volatile digital currency that thrives in bullish markets and crumbles during economic uncertainty. But Robert Mitchnick, Head of Digital Assets at BlackRock, is pushing back against this narrative. In a recent interview with CNBC’s Squawk Box, he argued that the classification of Bitcoin as a high-risk asset stems more from flawed industry storytelling than from its actual economic properties.
Mitchnick emphasizes that Bitcoin’s core characteristics—scarcity, decentralization, and global accessibility—don’t align with traditional definitions of risk assets like equities or speculative stocks. Instead, he believes Bitcoin should be viewed through a different lens: as a long-term store of value, akin to digital gold.
👉 Discover how institutional adoption is reshaping Bitcoin’s role in modern finance.
The Narrative Problem: How the Crypto Industry Misrepresented Bitcoin
The perception of Bitcoin as a speculative, high-risk instrument didn’t emerge in a vacuum. According to Mitchnick, it was largely reinforced by the crypto industry itself.
“What we’re seeing is, to some extent, a self-fulfilling prophecy created by the research and commentary within the crypto space,” Mitchnick said. “By continuously framing Bitcoin as a risk-on asset, the industry has overshadowed its foundational traits.”
This persistent narrative has influenced investors, regulators, and financial media alike—leading many to treat Bitcoin like a tech stock or emerging market asset that surges during economic optimism and sells off during downturns.
But here's the disconnect: traditional risk assets are tied to corporate performance, interest rates, and macroeconomic cycles. Bitcoin operates independently of these systems. It isn’t issued by a government, doesn’t generate cash flow, and has a fixed supply cap of 21 million coins—features that make it fundamentally different from equities or corporate bonds.
By mislabeling Bitcoin based on short-term price correlations rather than intrinsic design, the industry may have inadvertently limited its broader acceptance as a legitimate financial asset.
Bitcoin ETFs: A Game-Changer for Institutional Adoption
One of the most significant developments in recent financial history was the U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs in early 2024. This regulatory green light opened the floodgates for institutional capital.
BlackRock’s iShares Bitcoin Trust (IBIT) quickly became the market leader, amassing $48.7 billion in assets under management—more than half of the entire U.S. spot Bitcoin ETF market. Remarkably, IBIT achieved $10 billion in assets faster than any ETF in the past 32 years.
This surge in institutional interest played a pivotal role in driving Bitcoin’s price to an all-time high of $108,000 by the end of 2024. The influx of regulated, transparent investment vehicles brought credibility and liquidity to the digital asset class.
However, recent macroeconomic concerns—including fears over U.S. economic instability and potential trade tariffs under a possible second Trump administration—have triggered a correction. Bitcoin dropped over 20%, and spot Bitcoin ETFs experienced nearly **$5.4 billion in outflows over five consecutive weeks**, only recently turning positive again with a single-day inflow of $274 million.
Despite this pullback, Mitchnick remains confident in Bitcoin’s long-term trajectory.
Why Economic Downturns May Actually Benefit Bitcoin
A common assumption in financial circles is that recessions hurt risk assets—and by extension, hurt Bitcoin. But Mitchnick challenges this logic.
“The idea that a recession would inherently damage Bitcoin makes little sense,” he stated. “In fact, economic downturns could increase demand for Bitcoin as an alternative to traditional monetary systems.”
Unlike fiat currencies, which central banks can devalue through inflationary policies during crises, Bitcoin’s supply is fixed and immune to manipulation. In times of currency devaluation or loss of trust in financial institutions, assets with hard-coded scarcity become more attractive.
While rising interest rates can pressure all non-yielding assets—including both Bitcoin and gold—Mitchnick argues that this shouldn’t be mistaken for risk sensitivity. Rather, it reflects broader market dynamics affecting any asset that doesn’t pay dividends or interest.
👉 See how Bitcoin is evolving beyond volatility into a strategic reserve asset.
Bitcoin vs. Gold: The Digital Store of Value Debate
Mitchnick reaffirmed his belief that 2024 was a historic year for Bitcoin—not just because of price gains, but because of its growing recognition as digital gold.
“Bitcoin has delivered a 15% gain since November last year,” he noted. “That resilience amid macro turbulence shows its strength as a long-term value preservation tool.”
This view stands in stark contrast to critics like Peter Schiff, a well-known gold advocate and vocal Bitcoin skeptic. On social media platform X, Schiff recently declared:
“The Bitcoin bubble has burst. Real gold is the future. Digital fool’s gold will be phased out by the market. Those ignoring this trend will suffer the consequences.”
Yet while gold reached new market valuation highs amid rising U.S. national debt and concerns over fiscal sustainability, Bitcoin continues gaining traction among younger investors, technologists, and forward-thinking institutions.
The debate isn’t just about performance—it’s about philosophy. Is value derived from centuries of tradition (gold), or from cryptographic scarcity and network effects (Bitcoin)? The answer may shape the future of money.
Frequently Asked Questions (FAQ)
Q: Why do people think Bitcoin is a risk asset?
A: Because its price can be volatile in the short term and often moves alongside equities during market swings. However, this correlation doesn’t define its fundamental nature.
Q: Can Bitcoin act as a hedge against inflation?
A: Many investors believe so, due to its capped supply of 21 million coins. Unlike fiat currencies, Bitcoin cannot be inflated by central banks.
Q: Does institutional adoption reduce Bitcoin’s risk profile?
A: Yes. As regulated financial products like ETFs grow in popularity, they bring stability, transparency, and mainstream legitimacy to Bitcoin investing.
Q: What makes Bitcoin different from other cryptocurrencies?
A: It has the largest network effect, longest track record, highest security budget (via mining), and strongest brand recognition—making it the most trusted digital asset.
Q: Is now a good time to invest in Bitcoin after the recent drop?
A: That depends on your investment horizon. Short-term traders face volatility; long-term holders often see dips as accumulation opportunities.
Q: How does Bitcoin compare to gold as a store of value?
A: Both are scarce and non-sovereign. But Bitcoin is more portable, divisible, verifiable, and easier to transfer globally—offering advantages in a digital-first economy.
Reframing the Conversation: Toward a New Financial Paradigm
Robert Mitchnick’s message is clear: stop judging Bitcoin by outdated financial categories. Its value lies not in mimicking stocks or bonds but in offering something entirely new—a decentralized, borderless, censorship-resistant form of money.
As institutional adoption accelerates and narratives evolve, the label of “risk asset” may gradually lose relevance. Instead, we may see Bitcoin increasingly integrated into portfolios not for speculation—but for resilience, diversification, and long-term wealth preservation.
👉 Learn how next-generation investors are redefining risk and reward with digital assets.
The journey isn’t without volatility. But if history teaches us anything, it’s that transformative innovations often begin with skepticism—and end with widespread acceptance.