Bitcoin Price Rises, But Market Sentiment Remains Divided

Bitcoin Price: Can It Hold Up Amid Rising Risks?

Bitcoin Price– Bitcoin (BTC) is currently trading at $85,387, reflecting a 2.30% increase in the past 24 hours. Despite the positive movement, market sentiment remains divided, as inflows have dropped by 54%, from 58.6K BTC/day to 26.9K BTC/day. However, institutional players like BlackRock remain optimistic about Bitcoin’s future, especially during economic downturns.

Robbie Mitchnick, BlackRock’s Head of Digital Assets, believes that Bitcoin (BTC) could thrive even in a recession. He emphasized that Bitcoin benefits from fiscal stimulus, lower interest rates, and monetary easing—all of which are common during recessions. Additionally, fears of social unrest could push more people to use Bitcoin as a hedge, further supporting its role as a safe haven.

BlackRock, through its iShares Bitcoin Trust ETF (IBIT), holds 570,582 Bitcoin (BTC), including a significant addition of 22,076 BTC this year. Mitchnick attributes Bitcoin’s recent decline below $80k to premature expectations regarding the economy. Factors like early rate cut speculation and Bitcoin’s evolving role as a strategic reserve are central to the current volatility.

As the possibility of a U.S. recession grows, Bitcoin’s role as a safe haven is being tested. A recession typically triggers lower demand, rising unemployment, and market corrections. During such cycles, Bitcoin’s resilience could be put to the test. However, BlackRock’s bullish outlook remains intact, with liquidity from rate cuts potentially supporting Bitcoin in the medium term.

Bitcoin’s 22% decline from its all-time high of $109k may signal the start of a larger market correction, increasing volatility unless market conditions shift. The ongoing inflationary trends and potential economic retests could influence Bitcoin’s price trajectory in the coming months.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.