BlackRock Brings Rally to Bitcoin: Don't Fear the Recession, It Could Trigger the Rise! - Coin Bulletin

BlackRock manager Robbie Mitchnick stated that a potential recession in the U.S. could be an important catalyst for Bitcoin.

Robbie Mitchnick, Head of Digital Assets at BlackRock, stated in an interview with Yahoo Finance on March 19 that, contrary to some analysts, the likelihood of Bitcoin succeeding in a recessionary macroeconomic environment is high. Mitchnick said, "I don't know if there will be a recession, but a recession could be a significant catalyst for Bitcoin."

Mitchnick emphasized that Bitcoin is typically triggered by increasing public spending, budget deficits, low interest rates, and monetary stimulus, which are often seen during recessions. He also stated that fears of general social decay have a catalytic effect on Bitcoin, but unfortunately, this is also a situation that could occur during a recession.

Bitcoin is distinguishing itself from high-risk assets

Mitchnick argued that Bitcoin is still seen as a risky asset by many, but this is not true. Risky assets, such as stocks, commodities, and high-yield bonds, are negatively affected during economic crises. However, the BlackRock executive stated that it is wrong for Bitcoin to be categorized this way and that this situation offers educational opportunities.

Mitchnick noted that BlackRock has helped some of its clients navigate these contradictory narratives. He also emphasized that more sophisticated long-term Bitcoin investors view market corrections as buying opportunities and are not affected by current economic hurdles.

The institutional adoption of Bitcoin has played a significant role with BlackRock's iShares Bitcoin Trust ETF. This product currently holds the highest net assets among Bitcoin investment products, with an asset value of 48.7 billion dollars.