I noticed an interesting position from the head of the Digital Assets division at BlackRock. The guy directly states that the volatility driven by the use of leverage seriously undermines the entire narrative around Bitcoin.

I think this is an important observation. When it comes to institutional involvement in crypto, people often forget that leverage can create artificial price swings in both directions. And if major players like BlackRock see the problem precisely in this, it’s a signal to think about.

In the context of developing market infrastructure similar to how traditional indices like the New York Index operate, the cryptocurrency market is still in its early stages. Excessive leverage could undermine trust in Bitcoin as a serious asset for institutional investors.

This doesn’t mean Bitcoin is losing its meaning, but it shows that the market needs a healthier structure so that volatility results from real fundamental factors rather than financial engineering. It’s interesting to see how these discussions influence the development of crypto infrastructure.