Digital assets move in the same direction as stocks, but BlackRock calls Bitcoin a "safe-haven asset".

Although the recent price movements of Bitcoin have been highly correlated with the US stock market, Rob Mitchnick, the head of digital assets at BlackRock, said that labeling this cryptocurrency as a "risk-on" asset may be a misnomer. Stocks, commodities, and high-yield bonds are also considered risk assets, as they tend to perform well during periods of market optimism and economic expansion. In uncertain times, safe-haven assets such as gold are often more favored by investors. During an interview on Tuesday, Mitchnick said, "Gold shows a lot of the same patterns. You have these temporary (correlations), but the long-term (correlation) approaches zero." Mitchnick pointed out that Bitcoin is not controlled by any country or government, making it scarce and decentralized. He stated, "When we think about Bitcoin, we primarily see it as an emerging global currency alternative. A scarce, global, decentralized, non-sovereign asset. It is an asset with no specific country risks, no counterparty risks." BlackRock operates a cryptocurrency ETF, investing in Bitcoin and Ethereum. Mitchnick mentioned that while many investors see Bitcoin as digital gold - something that holds value during times of stress - many institutional clients are not clear on Ethereum. Ethereum is used by various applications on related blockchains. So far this year, Bitcoin has risen by 49%, Ethereum has risen by 15%, largely attributed to the approval of spot ETFs holding both tokens earlier this year.