BlackRock has for the first time declared that Bitcoin is decoupling from tech stocks, as per Jay Jacobs, the firm’s US head of equity ETFs. This change in perspective aligns with Bitcoin’s performance against equities and gold. Jacobs highlighted that ongoing geopolitical tensions and macroeconomic uncertainty have made Bitcoin increasingly attractive as an alternative asset. The term ‘megaforces’ refers to the significant global trends driving this shift.
In an important shift, BlackRock has acknowledged that Bitcoin is decoupling from tech stocks, according to Jay Jacobs, the firm’s US head of equity ETFs. This notion, long seen as wishful thinking by Bitcoin enthusiasts, has evidently gained traction in the financial sphere. Jacobs stated on CNBC’s Squawk Box Asia, “Crypto over the long run is decoupled from tech stocks.” The firm, which manages over $10 trillion in assets, now perceives Bitcoin as an asset with unique behaviour, distinctly separate from traditional equities.
Up until now, Bitcoin was widely viewed as closely linked to tech stocks, notably Tesla. But recent market movements have changed this perspective, with Bitcoin being compared more to gold—an asset that investors often turn to in turbulent times. Jacobs highlighted Bitcoin’s recovery following what he called ‘Liberation Day,’ contrasting it with the declines in equities and the dollar. Currently priced at $95,300, Bitcoin has surged by 12% in the last week alone, boasting solid performance even as the stock market re-emerges.
Amidst the backdrop of a volatile market, the term ‘decoupling’ has emerged as a critical talking point on Wall Street. Investors are keen on assets that present an appealing risk-to-return profile, especially given Donald Trump’s aggressive trade policies and ongoing US-China tensions. Jacobs pointed out, “People are looking for those assets that behave differently,” which has showcased Bitcoin’s potential in today’s investment landscape.
This viewpoint isn’t solely Jacobs’—CNBC anchor Scott Wapner echoed these sentiments, stating that Bitcoin has “decoupled obviously” from the Nasdaq, a trend that has gained momentum recently. The current economic uncertainty is driving this divergence, noted Jacobs. He explained, “Fundamentally, this should behave like an uncorrelated asset,” and the more prolonged this environment of instability persists, the more likely investors will turn to Bitcoin.
However, with unpredictable tariff policies and escalating trade disputes not showing signs of resolution, the duration of this uncertainty remains in question. While Trump has ramped up his tariff strategies, China insists there have been no discussions regarding tariff cuts, as reported by Bloomberg. Jacobs also introduced the term ‘megaforces’ in relation to this uncertainty. He described these as powerful global trends, such as geopolitical fragmentation, that are reshaping market dynamics.
According to Jacobs, this fragmentation manifests in practices like reshoring—bringing back manufacturing to original nations—and is heightening Bitcoin’s appeal as a risk hedge. “Directly related to that geopolitical fragmentation is the rise of Bitcoin as people see more destabilisation and the need for alternative assets,” he concluded. This development marks a significant turning point in how traditional finance views the cryptocurrency sector, with major implications for the future of investing.
Pedro Solimano reports from Buenos Aires. For tips, he can be reached via email at [email protected].
