BlackRock, the world’s largest asset manager, has highlighted Bitcoin’s potential as a key diversification asset in its 2025 Global Outlook report. The report emphasizes Bitcoin’s fixed supply and growing demand, driven by increasing investor confidence in its wider adoption as a payment technology, as key factors contributing to its unique value proposition.
According to BlackRock, Bitcoin’s distinct value drivers set it apart from traditional assets and contribute to its low correlation with stocks and other risk assets. The report notes that Bitcoin’s price appreciation is linked to its predetermined supply meeting growing demand, fueled by the belief in its potential for broader adoption in payment systems. The report cites the post-US election price surge as an example, attributing it to increased investor optimism surrounding potential adoption given then President-elect Trump’s past support for cryptocurrencies.
BlackRock acknowledges the historically low correlation between Bitcoin and equity returns, even with occasional spikes. The report emphasizes that Bitcoin’s risk and return profile could evolve if widespread adoption occurs, potentially shifting its role to a tactical hedge against specific risks, similar to gold.
The report underscores the changing market environment, where the traditional negative correlation between stock and bond returns has become unstable, reducing the effectiveness of government bonds as a buffer against equity sell-offs. In this context, BlackRock sees assets like gold and emerging assets such as Bitcoin as crucial tools for bridging this diversification gap.
“We see the potential for assets like bitcoin to provide distinct sources of risk and return,” the report states.
