BlackRock executives: Geopolitical tensions drive central banks to shift towards gold and cryptocurrencies such as Bitcoin (BTC)

Source: Cointelegraph Original: "BlackRock Executive: Geopolitical Tensions Drive Central Banks to Shift Towards Gold and Cryptocurrencies like Bitcoin (BTC)"

Jay Jacobs, head of thematic investing and active ETFs at BlackRock, stated that against the backdrop of rising geopolitical uncertainty, global central banks are accelerating their diversification strategies, increasingly turning to assets such as gold and Bitcoin (BTC).

In a recent interview with CNBC, Jacobs pointed out that the reduction of dependence on dollar reserves by various countries in favor of assets like gold and Bitcoin is a long-term trend.

"This shift from traditional assets to diversification into assets like gold and cryptocurrencies began about 3 or 4 years ago," Jacobs explained.

He stated that the recent intensification of geopolitical division has exacerbated countries' pursuit of alternative value storage methods.

CNBC host Martin Soong also mentioned that the freezing of $300 billion in central bank assets by Russia due to the Ukraine war has raised widespread concerns, prompting countries like China to reconsider their reserve strategies.

In an interview, Jacobs from BlackRock stated that the company has identified geopolitical fragmentation as a decisive force influencing global markets for decades to come.

"We indeed believe that geopolitical divergence will be a tremendous force driving world development in the coming decades."

He pointed out that this environment is driving market demand for non-correlated assets, with Bitcoin (BTC) increasingly being viewed as a safe-haven asset alongside gold.

"We are seeing a significant inflow of funds into gold ETFs and Bitcoin. This is because people are looking for assets that perform differently," Jacobs said.

It is worth noting that it is not just Jacobs who emphasizes the decreasing correlation between Bitcoin and U.S. stocks. Several analysts have also observed that Bitcoin is beginning to decouple from the U.S. stock market.

On April 22, Alex Svanevik, co-founder and CEO of the cryptocurrency data analytics platform Nansen, stated that the price of Bitcoin is demonstrating its growing maturity as a global asset, "reducing its correlation with Nasdaq and behaving more like gold."

He added that compared to altcoins and indices like the S&P 500, Bitcoin has shown "surprising resilience" during trade wars, but is still susceptible to concerns about economic recession.

QCP Capital also expressed a similar view in a Telegram message on April 21, stating that Bitcoin seems to be sharing the halo of gold as a hedge against macroeconomic uncertainty.

"As the stock market fell last week and continued its downward trend from April, the narrative of Bitcoin as a safe-haven or inflation hedge tool has gained attention once again. If this dynamic persists, it may provide new impetus for institutional allocation of Bitcoin," the institution wrote.

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