BlackRock’s View: How a Recession Could Boost Bitcoin’s Value

BlackRock Predicts Bitcoin Growth Amid Economic Slowdown

BlackRock– Robbie Mitchnick, BlackRock’s head of digital assets, recently shared his bullish stance on Bitcoin’s performance during a potential recession. Contrary to some analysts who view recessions as negative for Bitcoin, Mitchnick believes the cryptocurrency could thrive under these conditions.

In a March 19 interview with Yahoo Finance, Mitchnick explained that economic recessions are often accompanied by increased fiscal spending, rising deficits, lower interest rates, and monetary stimulus—all factors that can drive Bitcoin’s growth. He also pointed out that Bitcoin’s appeal increases during periods of social uncertainty, a condition that tends to coincide with economic downturns.

“Recession would be a big catalyst for Bitcoin,” Mitchnick said, noting that Bitcoin is “catalyzed” by these factors, even fears of social disorder. He emphasized that while many still view Bitcoin as a “risk-on” asset, it is actually a unique asset that could perform well during recessions.

Institutional Investors See Opportunity in Bitcoin

Mitchnick revealed that many of BlackRock’s clients—especially those who are long-term Bitcoin accumulators—are not concerned by current economic challenges. These clients view market corrections as an opportunity to buy Bitcoin at lower prices, positioning themselves for future growth.

BlackRock’s iShares Bitcoin Trust ETF is a major player in institutional Bitcoin investment, holding $48.7 billion in assets. Despite recent mass outflows in Bitcoin exchange-traded funds (ETFs), Mitchnick remains optimistic, explaining that the outflows were largely due to hedge funds unwinding short-term positions, not long-term investors.

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.