BlackRock's head of digital assets warns leverage-driven volatility risks undermine bitcoin’s institutional narrative

Robert Mitchnick, BlackRock's head of digital assets, stated that while Bitcoin's fundamentals remain strong, excessive speculation, particularly on leveraged derivatives platforms, is introducing instability that damages its image as a stable portfolio hedge. He cited instances where minor news causes significant price drops due to cascading liquidations and auto-deleveraging. Mitchnick cautioned that if Bitcoin continues to trade like "levered NASDAQ," the barrier for adoption by conservative investors will rise significantly. He refuted the idea that ETFs like IBIT are causing volatility, attributing the instability instead to massive liquidations on perpetual futures platforms, noting that ETF redemptions were minimal during a recent tumultuous week. Despite short-term turbulence, BlackRock remains committed to digital assets as a bridge between traditional finance and the digital asset world.

(Source：CoinDesk)