In a discussion with Yahoo Finance, Robbie Mitchnick—Global Head of Digital Assets at BlackRock—commented on Bitcoin’s recent plateau and articulated his belief that institutional demand may be stronger than the current price indicates. Despite high expectations tied to regulatory advancements and a “crypto-friendly” approach from the White House, Bitcoin has lingered in the mid-$80,000 range as 2025 begins, raising questions about what might propel the next price surge.
Is Bitcoin Overlooked?
Mitchnick pointed out that Bitcoin exhibited notable strength towards the close of 2024. “Bitcoin is still up, let’s say about 15% since early November,” he remarked. This upward trend, he noted, was driven by a blend of institutional enthusiasm and optimism regarding potential government support during the Trump administration.
Nevertheless, he warned that “accelerated, maybe overly optimistic expectations regarding how swiftly certain catalysts would emerge” might have factored into the recent stagnation in prices. According to Mitchnick, many investors anticipated an immediate increase following the White House’s pro-crypto actions. When those increases didn’t materialize, some short-term participants began to unwind their positions, putting downward pressure on Bitcoin’s price.
BlackRock made headlines with its Bitcoin exchange-traded funds, recognized for introducing new levels of institutional investment into the crypto arena. However, Mitchnick disclosed that inflows have lessened: “2024 was remarkable, quite historic in that regard. But the start of 2025 has been somewhat negative. We’ve observed some outflows in this category—relatively modest considering the overall asset base is nearing $100 billion.”
He attributed this decline largely to hedge funds unwinding a spot-futures arbitrage trade that yielded “double-digit” returns in 2024 but has since fallen to single digits. Mitchnick stressed that these outflows primarily come from short-term traders, rather than the more traditional “buy-and-hold” investors.
A key question raised in the interview was why Bitcoin has not acted as a safe haven, akin to gold, amidst ongoing economic uncertainties. While gold has surged due to investor anxiety about the economy, Bitcoin has not followed suit. Mitchnick suggested that this inconsistency arises from market psychology and what he referred to as “short-term correlation spikes.”
“Fundamentally, Bitcoin … should be uncorrelated or even inversely correlated against specific risk factors … But currently, it’s being linked to factors that don’t make much sense—tariffs, economic concerns—and the market’s commentary doesn’t accurately reflect Bitcoin’s fundamentals,” Mitchnick stated.
He went on to highlight Bitcoin’s distinct characteristics—its scarcity, decentralized nature, and its existence “outside any single nation’s economic, political, or monetary framework.” Over time, Mitchnick views these traits as validating Bitcoin’s comparison to “digital gold,” but he admits that investor behavior often treats it as a high-volatility, “risk-on” asset in the short term.
When queried about the U.S. government’s position—especially in light of a Trump administration endorsement for a strategic Bitcoin reserve—Mitchnick was circumspect, indicating that “many aspects still remain to be clarified on that front.” He underscored that: “What we have observed is a strong signal of support and conviction in this sector, particularly in Bitcoin and its uniqueness … Whether and when … that might be funded is still under consideration … but it’s certainly not the sole catalyst for adoption in 2025.”
While speculation grows regarding whether the government will officially start accumulating Bitcoin, Mitchnick emphasized that the broader community of institutions and wealth advisors continues to build positions. In his view, these investors remain “very enthusiastic” about the current market landscape despite the recent downturn.
Mitchnick also discussed recent challenges, including the ByBit hack that temporarily affected market sentiment. He suggested that increased volatility can drive short-term traders out of the market, but in the long term, more seasoned holders often view price declines as opportunities to buy. According to Mitchnick: “Some were cashing out a bit in the [$100,000] range … Now they view this correction as somewhat of an irrational selloff … We are striving to apply some quantitative analysis to that as well.”
At the time of writing, BTC was priced at $84,197.
Featured image created with DALL.E, chart from TradingView.com
Editorial Process for Bitcoinist is focused on providing well-researched, precise, and impartial content. We adhere to stringent sourcing standards, and each page is thoroughly reviewed by our team of leading technology experts and experienced editors. This process assures the integrity, relevance, and value of our content for our audience.
