BlackRock continues to double down on its Bitcoin strategy, actively buying the dip despite broader market turbulence.
According to data from Arkham, BlackRock’s spot ETF, IBIT, added another $25 million worth of Bitcoin to its holdings.
This comes as Bitcoin trades around $83,300, gaining about 1% on Friday even as the Nasdaq 100 experienced a second day of sharp declines following newly announced trade tariffs.
The Nasdaq has now fallen over 16% year-to-date, while Bitcoin has dipped nearly 12% in the same period — but has still significantly outperformed the tech-heavy index over time.
Alex DovbnyaThe ongoing accumulation by BlackRock underscores its long-term conviction in Bitcoin. This stance was echoed earlier in the year by CEO Larry Fink in his annual shareholder letter, where he raised concerns about the U.S. dollar’s global dominance.
Citing the ballooning national debt and rising geopolitical risks, Fink warned that Bitcoin could eventually become a more attractive store of value than the U.S. dollar. He also cautioned that decentralized finance might erode the U.S.’s economic edge.
Is Bitcoin risk-off asset?
Despite Bitcoin's recent outperformance of traditional equities, the question of whether it functions as a risk-off asset remains contested. Historically, Bitcoin has traded in line with other risk assets, showing strong correlation with stocks.
Bloomberg’s ETF analyst Eric Balchunas weighed in, suggesting Bitcoin should not be sold as a hedge to anything but inflation and monetary debasement. “It is 100% hot sauce,” Balchunas noted, adding that while it's not a safe haven, IBIT is still up 78% since its launch just over a year ago.
As institutions like BlackRock continue to back Bitcoin, investor perception of the asset may evolve — not necessarily as digital gold, but as a powerful, if volatile, tool in an increasingly uncertain macroeconomic landscape.
Vladislav Sopov
Dan Burgin