April 28, 2025
By Our Correspondent
Global central banks are rapidly enhancing their diversification strategies in response to escalating geopolitical uncertainties, increasingly favoring assets such as gold and Bitcoin, as stated by Jay Jacobs, the head of thematics and active ETFs at BlackRock.
In a recent CNBC interview, Jacobs highlighted a long-term trend where nations are decreasing their dependence on dollar-denominated reserves in favor of assets like gold and, more recently, Bitcoin. He noted that this shift away from traditional assets towards alternatives like gold and cryptocurrency likely began three to four years ago. Jacobs emphasized that the recent geopolitical fragmentation has further accelerated the movement towards alternative stores of value.
CNBC anchor Martin Soong also mentioned the rising concerns regarding the freezing of $300 billion in Russian central bank assets due to the ongoing conflict with Ukraine, indicating that such incidents have led countries like China to reconsider their reserve strategies.
During the interview, Jacobs remarked that BlackRock, the largest asset manager globally, has recognized geopolitical fragmentation as a pivotal force shaping global markets in the coming decades: “We have identified geopolitical fragmentation as a mega force that will drive the world forward over the next several decades.”
He pointed out that this environment is increasing the demand for uncorrelated assets, with Bitcoin being increasingly regarded as a safe-haven asset alongside gold. “We have observed substantial inflows into gold ETFs and Bitcoin, driven by the search for assets that exhibit different behaviors,” Jacobs stated.
Importantly, Jacobs is not the only one highlighting the diminishing correlation between Bitcoin and US equities. Numerous analysts have noted that Bitcoin appears to be separating from the US stock market.
On April 22, Alex Svanevik, co-founder and CEO of the Nansen crypto intelligence platform, remarked that Bitcoin’s price reflects its increasing maturity as a global asset, evolving to be “less like Nasdaq and more akin to gold.” He further stated that Bitcoin has proven to be ‘surprisingly resilient’ during the trade war in comparison to altcoins and indices such as the S&P 500, although it still faces risks related to economic recession fears.
Supporting this view, QCP Capital mentioned in a Telegram note on April 21 that Bitcoin seems to be sharing some of gold’s appeal as a safeguard against macroeconomic instability. “With equities closing last week in the negative and continuing an April decline, the narrative of Bitcoin as a safe haven or inflation hedge is once again gaining momentum. If this trend persists, it could create a new impetus for institutional investment in Bitcoin.”
