Bitcoin, a digital currency renowned for its remarkable performance over the last decade, may not continue to experience the same level of extraordinary growth in the future, according to insights from BlackRock. As Bitcoin becomes increasingly integrated into mainstream finance and more regulated, particularly with the advent of exchange-traded funds (ETFs), the era of astronomical returns could be transitioning. Robert Mitchnick, BlackRock’s head of digital assets, shared these observations at the Bitcoin Investor Day conference in New York City.
While Bitcoin has delivered exceptional returns in the past, Mitchnick anticipates that future returns will be more subdued. He challenges the notion that the cryptocurrency will sustain its historical annual gains of 124%. This shift is influenced by various factors, including Bitcoin's evolving maturity and institutional adoption, as well as the impact of ETFs on trading dynamics and price volatility.
