BlackRock Publishes Outlook Report for 2025: Here’s What They Think About Bitcoin’s Future
BlackRock points to Bitcoin’s potential as a transformative and diversifying asset in its 2025 Global Outlook report.
With its fixed supply and growing demand driven by rising investor confidence and adoption as a payments technology, Bitcoin is positioned as a unique addition to investment portfolios by offering low correlation to traditional risk assets such as stocks and bonds, according to the report.
The report notes that Bitcoin’s value is driven by different factors, including its limited supply and its potential for widespread adoption. BlackRock says:
“Bitcoin’s potential as a new diversifier stems from its unique value drivers: the potential to appreciate over time as its predetermined supply is met by increasing demand, and demand is driven by investors’ belief in Bitcoin’s potential for wider adoption as a payments technology.”
The asset manager also points to Bitcoin’s resilience as a potential buffer in an increasingly volatile market environment. As correlations between stocks and bonds weaken, traditional safe havens like gold and emerging assets like Bitcoin could fill the gap left by government bonds that have become less effective as a hedge against stock sell-offs, analysts say.
Bitcoin’s historically low correlation with equity markets increases its appeal as a diversifier, but its risk-return profile could change with wider adoption, according to BlackRock. The report highlights:
“The risk and return profile of Bitcoin will change if it becomes widely adopted. At that point, it may be more suitable as a tactical hedge against certain risks, like gold.”
*This is not investment advice.