BlackRock digital-assets head: leverage-driven volatility threatens bitcoin

Robert Mitchnick, head of digital assets at BlackRock, warned that rampant speculation on crypto derivatives platforms is fueling volatility and undermining bitcoin’s appeal as a stable institutional hedge. He noted that BlackRock’s iShares Bitcoin ETF (IBIT) has been a highly successful product launch, but growing reliance on leverage could damage bitcoin’s long-term institutional narrative.

“These days where you have a tiny little thing that shouldn't have any price impact really at all — and if it does, should be small — like, for example, October 10th, some tariff-related thing, and next thing you know, [bitcoin] is down 20%,” Mitchnick said. “That’s because you get cascading liquidations and auto-deleveraging.” Mitchnick cautioned that, while bitcoin’s fundamentals as a “global, scarce, decentralized monetary asset” remain intact, recent trading increasingly resembles a “levered NASDAQ,” a pattern that could raise the bar for conservative allocators.

blackrock, robert mitchnick, bitcoin, ibit, ishares, leverage, volatility, crypto derivatives, liquidations, auto deleveraging