BlackRock’s digital assets chief, Robbie Mitchnick, believes that Bitcoin could perform exceptionally well in the event of a U.S. recession, despite differing opinions from some analysts.
Speaking in a March 19 interview with Yahoo Finance, Mitchnick stated, “Whether or not a recession happens, if it does, it would serve as a significant catalyst for Bitcoin.”
He explained that Bitcoin tends to benefit from factors like increased government spending, rising deficits, lower interest rates, and monetary stimulus—all of which are common responses to economic downturns.
“Additionally, Bitcoin often gains momentum due to concerns over broader societal instability,” Mitchnick added. “Unfortunately, such instability can accompany a recession.”
According to the BlackRock executive, many investors still misunderstand Bitcoin’s role in the market, often classifying it as a high-risk asset.
Traditional risk-on assets, including stocks, commodities, and high-yield bonds, typically struggle during economic crises. However, Mitchnick argued in September that Bitcoin’s categorization as a risk-on asset is misleading.
“That’s where education comes in,” he said, emphasizing that Bitcoin remains a relatively young asset class. BlackRock has been working to help its clients navigate the mixed narratives surrounding Bitcoin’s place in the financial ecosystem.
Mitchnick also noted that BlackRock’s more seasoned, long-term Bitcoin investors view market dips as buying opportunities rather than causes for concern, remaining unfazed by current economic turbulence.
Meanwhile, analysts from cryptocurrency exchange Coinbase presented a more cautious stance, suggesting that recession fears and recent tariff policies had dampened the optimistic crypto outlook for the first quarter of the year.
“Concerns over a potential sharp U.S. economic slowdown or recession have significantly shifted market sentiment,” Coinbase Institutional stated in its March 17 report.
BlackRock has played a crucial role in institutional Bitcoin adoption through its iShares Bitcoin Trust ETF, which currently holds the highest net assets among Bitcoin investment products at $48.7 billion.
Mitchnick downplayed the recent net outflows from most spot Bitcoin ETFs, explaining that they were largely due to hedge funds unwinding spot-futures arbitrage trades rather than long-term investors selling off their holdings.
At present, Bitcoin is trading at $86,000, reflecting a 3.8% increase in the last 24 hours.
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