Robert Mitchnick, the Head of Digital Assets at the world's largest asset management firm BlackRock, recently stated in an interview with CNBC's Squawk Box that Bit should not be viewed as a risk asset, and criticized some comments within the crypto industry that have exacerbated market misunderstandings about Bit.

He emphasized that Bit has characteristics of "globality, scarcity, non-sovereignty, and decentralization", which are different from traditional high-risk investment categories.

Industry Narrative Impacts Market Perception

Mitchnick pointed out that the recent market volatility reaction to Bit is partly due to the industry's deliberate exaggeration of its risk attributes, leading to investors' misconceptions. He said:

This phenomenon is actually a self-harm result within the industry, as many commentaries have portrayed Bit as a risk asset, but this does not conform to its essence.

Furthermore, he believes that the claim that a US economic recession will affect Bit prices "has no basis". On the contrary, he believes that a recession may actually become a catalyst for Bit.

Tariff policies may not necessarily be negative for Bit, and if the economy really falls into a recession, this could strengthen Bit's value as a hedge asset.

Bitcoin's Digital Gold Value Remains Unchanged

Regarding the external macroeconomic variables, Mitchnick believes that a high-interest rate environment may indeed affect Bit prices, but this is the same situation faced by traditional assets such as the stock market. He emphasized:

The core value of Bit remains unchanged, and the market's view of it as digital gold is still ongoing.

As for the future outlook, he believes that Bit's positioning as a "global, non-sovereign" asset will continue to attract capital inflows, especially in an environment of increasing uncertainty, where investors may be more inclined to use it as a hedge.

ETF Drives Institutional Capital Inflow

Since November 2023, the price of Bit has risen by about 15%. Mitchnick believes that 2024 will be a "historic year", and emphasizes that the market's recognition of Bit's long-term value has gradually made it seen as "digital gold".

US regulators approved a spot Bit ETF in early 2024, driving institutional investment capital inflows. As of now, the total assets of Bit ETFs have reached $100 Billion, with BlackRock's iShares Bit Trust (IBIT) holding about $46.5 Billion, setting a record for the fastest ETF industry to reach $10 Billion in assets.