Bitcoin Skyrockets Above $70,000 As BlackRock Deems Asset A “Good Portfolio Diversifier”

Bitcoin surged by more than 4.5% to above $70,000 on Monday, regaining lost ground after reaching an all-time high of $74,000 earlier this month.

• Until Thursday of last week, Bitcoin traded below $65,000 following a multi-day period of unusually small inflows to Bitcoin ETF products, coupled with monstrous outflows from the Grayscale Bitcoin Trust (GBTC).
• The asset’s price began to surge again on Friday following the Bitcoin Investor Day conference, when Robert Mitchnick – BlackRock’s digital assets lead – labeled Bitcoin as a good portfolio diversifier.
• At the time, Mitchnick explained that the asset’s price movements have historically correlated with real interest rates and inflation expectations.
• “It’s the reason Bitcoin’s generally not appropriate in large concentration in a portfolio,” he said at the time.
• Mitchnick also said that Bitcoin is unique for its overwhelming demand among BlackRock’s clients, compared to other digital assets.
• “Eventually we expect there will be a convergence where the best of the old system and the new technology will become fused into a new infrastructure system in finance,” he added.
• As of Friday, BlackRock’s Bitcoin ETF, IBIT, held over 240,000 BTC, more than any other Bitcoin ETF besides GBTC.
• Bitcoin’s Monday surge coincided with over $200 million of crypto liquidations on the day – mostly impacting short traders.