BlackRock Executive Raises Alarm Over Bitcoin Leverage Trading Volatility

On the 13th, Robert Mitchnick, head of digital assets at BlackRock, the world's largest asset management company, warned that excessive leverage trading in the cryptocurrency derivatives market is undermining Bitcoin's (BTC) appeal as a portfolio hedge for institutional investors.

Speaking at the Bitcoin Investment Week Conference in New York, Mitchnick emphasized that while Bitcoin's fundamental values of scarcity and decentralization remain robust, trading patterns have become akin to a 'leveraged Nasdaq,' raising barriers for conservative investors.

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