BlackRock: Bitcoin's correlation with US stocks is weakening, and market sentiment is improving

Comparative news, according to The Block, Robert Mitchnick, head of digital assets at BlackRock, said that Bitcoin market sentiment has improved markedly but subtly in the past month, and the correlation between Bitcoin and US stocks is weakening. This is a healthy argument that Bitcoin is a tool for diversifying portfolios and hedging tail risks.

He pointed out that Bitcoin's performance significantly outperformed when the AI sector pulled back sharply in July, which is a reflection of this decoupling. Despite Bitcoin falling nearly 30% during the year, down about 50% from a year ago, ETF investors continued to buy — the US spot Bitcoin ETF recorded an inflow of $853.5 million last week, the best weekly performance since mid-April. Among them, BlackRock IBIT contributed $693.7 million (accounting for more than 80%) and Fidelity FBTC contributed $116.4 million. Bloomberg analyst Eric Balchunas pointed out that after the Coldcard vulnerability came to light, many funds recorded daily net inflows, and “it's hard not to think of it as a causal relationship.”