Bitcoin (BTC), the world’s oldest and most valuable cryptocurrency, recently struggled to maintain its early upward momentum, turning bearish around the $63,465 mark and hitting an intra-day low of $63,078. This decline was fueled by uncertainty regarding Bitcoin’s classification as a risk-on asset, alongside recent rumors involving Coinbase and BlackRock, which have heightened market unease.

Nevertheless, Bitcoin initially showed remarkable resilience, surging nearly 2% in the last 24 hours to approximately $64,300—its highest level since early August. This upward trend was driven by a global shift towards monetary easing, with China and other major economies loosening their policies to combat economic slowdowns.

Robbie Mitchnick’s Perspective: Bitcoin as a “Risk-Off” Asset During Market Volatility

Robbie Mitchnick, the head of digital assets at BlackRock, views Bitcoin as a “risk-off” asset, meaning it’s considered a safer investment during market uncertainty, unlike “risk-on” assets like stocks, which people buy when they feel positive about the market. He believes Bitcoin’s features, like its limited supply and decentralization, make it a potential global monetary alternative, much like gold. Mitchnick also points out that Bitcoin’s price changes are influenced by different factors compared to stocks, and over the long term, there’s almost no correlation between Bitcoin and the stock market.

Mitchnick highlights that Bitcoin doesn’t have the country-specific or counterparty risks that come with many other investments. Its strength lies in its ability to safeguard against problems like currency devaluation and political instability. Although Bitcoin’s price may sometimes move in line with the stock market in the short term, this doesn’t represent its true nature. He encourages investors to recognize that Bitcoin functions differently from traditional risk-on assets. Its main influences often differ from usual market indicators, which can create confusion about how it should be classified in the investment landscape.

Mitchnick’s classification of Bitcoin as a “risk-off” asset may bolster investor confidence, potentially increasing demand and stabilizing its price. This perspective could attract risk-averse investors seeking alternatives during market volatility, positively influencing Bitcoin’s market dynamics.

Institutional Endorsements Boost Bitcoin’s Market Outlook

Michael Saylor, CEO of MicroStrategy, recently supported BlackRock’s positive view on Bitcoin, sparking interest in the cryptocurrency community. In a Bloomberg Crypto interview, Robbie Mitchnick from BlackRock described Bitcoin as an important new global monetary option. This endorsement comes as BlackRock increases its involvement in the cryptocurrency market, recently getting approval from the SEC for Bitcoin options. Their new spot Bitcoin ETFs have gained a lot of attention, with $98.9 million in inflows shortly after launching, outpacing other ETFs from companies like Bitwise, Fidelity, and Grayscale, showing strong investor interest in Bitcoin.

Saylor’s endorsement is important for getting institutional investors to accept Bitcoin. He believes Bitcoin can act as both a risk-on and risk-off asset, making it better than traditional currencies because of its limited supply and decentralized nature. This viewpoint matches BlackRock’s belief in Bitcoin’s value, especially given today’s global economic difficulties. The increasing attention from institutional investors, along with significant money flowing into BlackRock’s ETFs, shows a changing attitude toward cryptocurrency among both retail and institutional investors, indicating that Bitcoin is being taken more seriously in the financial world.

This news positively impacts Bitcoin (BTC) by boosting institutional confidence, as Saylor’s endorsement and BlackRock’s ETF success attract significant investments. This increased institutional interest can drive Bitcoin’s price higher, signaling a more favorable market outlook for digital assets.

Bitcoin Price Prediction: Technical Outlook

Bitcoin (BTC/USD) is currently hovering around $63,470, showing a minor drop of 0.02%. On the 2-hour chart, Bitcoin is finding solid support from a rising trendline near the $63,000 level, which is a good sign for those hoping for a continued upward movement.

Interestingly, BTC has also formed a double-bottom pattern around this level, which typically hints at a potential bullish reversal.

If the positive momentum stays strong, Bitcoin could target the resistance zone at $63,800, with possible further gains toward $64,400 and $64,800.

The 50-day Exponential Moving Average (EMA) is also offering crucial support around $63,350, adding to the overall bullish vibe. However, if Bitcoin falls below this level, we could see some downside risk, with support levels at $62,690 and $62,290 acting as safety nets.

Let’s keep an eye on these key levels as BTC continues to fluctuate.