BlackRock digital assets head Robert Mitchnick said Bitcoin market sentiment has improved noticeably over the past month, though only modestly, and its correlation with U.S. stocks is weakening. According to Odaily, he said this supports the case for Bitcoin as a portfolio diversification tool and a tail-risk hedge.

Mitchnick said Bitcoin outperformed significantly when AI stocks corrected sharply in July, reflecting the decoupling. He added that although Bitcoin is down nearly 30% this year and about 50% from a year ago, ETF investors have continued buying.

U.S. spot Bitcoin ETFs recorded $854 million in net inflows last week, their best weekly performance since mid-April. BlackRock's IBIT accounted for $694 million, more than 80% of the total, while Fidelity's FBTC took in $116 million.