Following BlackRock’s white paper release, which underscored the potential of BTC as a hedge against monetary and geopolitical risks, Bitcoin experienced a nearly 6% price increase.
BlackRock has released a white paper on the appeal of Bitcoin to investors as a “unique diversifier” that is not subject to traditional fiscal and geopolitical risks.
A senior Bloomberg ETF analyst, Eric Balchunas, shared the nine-page white paper in a Sept. 18 X post shortly before the Bitcoin price reached its lowest point.
At approximately 4:21 pm UTC, Balchunas disclosed BlackRock’s report, nearly an hour after Bitcoin began to recover from its daily low of $59,354.
Cointelegraph data indicates that Bitcoin has since rebounded by over 5.7%, momentarily reclaiming $62,600 for the first time in over three weeks.
Historical chart patterns and Bitcoin’s average monthly returns for the fourth quarter of the year are leading some analysts to predict a three-month Bitcoin rally to $92,000, which could commence in October.
Bitcoin can Hedge Against monetary and geopolitical risks
Bitcoin was the world’s first “truly open-access monetary system,” not just a cryptocurrency, due to its decentralized, permissionless nature, as noted in BlackRock’s white paper.
The asset manager also commended Bitcoin for its lack of “traditional counterparty risk” and reliance on centralized systems. The white paper stated:
“These properties make it an asset that is largely detached (on fundamentals) from certain critical macro risk factors, including banking system crises, sovereign debt crises, currency debasement, geopolitical disruption, and other country-specific political and economic risks.”
The asset management behemoth shared a chart that illustrates how Bitcoin returns have surpassed the S&P 500 and gold prices during previous significant geopolitical events to emphasize the resilience of Bitcoin.
Global monetary and geopolitical concerns will promote Bitcoin adoption
According to BlackRock’s white paper, the extent of macroeconomic concerns will determine the trajectory of Bitcoin’s adoption.
“Over the long term, Bitcoin’s adoption trajectory is likely to be driven by the degree to which concerns rise and fall over global monetary instability, geopolitical disharmony, US fiscal sustainability and US political stability.”
“The trajectory of Bitcoin’s adoption is likely to be influenced by the extent to which concerns regarding global monetary instability, geopolitical disharmony, US fiscal sustainability, and US political stability fluctuate over the long term.”
According to Dune data, BlackRock is the issuer of the world’s most significant Bitcoin exchange-traded funds (ETF), which currently contain over $21.4 billion in BTC and control over 38% of the Bitcoin ETF market.
