TL;DR
- Robbie Mitchnick from BlackRock suggested that a recession in the U.S. could be a positive catalyst for Bitcoin due to factors like increased fiscal spending and monetary stimulus.
- BTC could become an uncorrelated asset with other traditional assets during an economic crisis, according to Mitchnick, who criticized the market’s current view of the cryptocurrency.
- BlackRock’s iShares Bitcoin Trust (IBIT) ETF has shown rapid growth, reaching $48.7 billion in net assets in record time.
During an interview, Robbie Mitchnick, head of digital assets at BlackRock, discussed how a potential recession in the U.S. could positively impact Bitcoin (BTC) performance.
Although he wasn’t sure whether the recession would actually occur, Mitchnick highlighted that if it materializes, an unfavorable economic environment could become a crucial boost for the cryptocurrency.
“If you look at bitcoin fundamentally on a long-term basis, it really seems like an asset that should be uncorrelated or even inversely correlated against certain risk factors that exist,” BlackRock global head of digital assets Robbie Mitchnick. pic.twitter.com/9HvuxH30vi
— Yahoo Finance (@YahooFinance) March 18, 2025
According to the executive, the typical factors of a recession, such as increased fiscal spending, rising deficits, lower interest rates, and monetary stimulus, are elements that favor Bitcoin. Additionally, he mentioned that fears of social disorder, also present in recessions, could increase demand for assets like BTC, positioning it as an attractive option in times of economic uncertainty.
The Lack of Understanding About Bitcoin and Its Potential
Mitchnick also addressed the market’s lack of understanding regarding Bitcoin’s true potential. In his opinion, many still view it as a risky asset, but he believes it should be perceived differently. Over the long term, BTC could be detached from the movements of traditional assets like stocks, real estate, or bonds, which are usually severely impacted during economic crises. For him, Bitcoin’s true value lies in its ability to be an uncorrelated or even inversely correlated asset with other risk factors in the market.
Furthermore, BlackRock has played a key role in the institutional adoption of BTC, especially through its iShares Bitcoin Trust (IBIT) ETF. This fund has rapidly reached a market capitalization of $48.7 billion in net assets, surpassing the $10 billion threshold in just two months. Its outstanding performance contrasts with the time it took other funds to reach similar figures, demonstrating the massive institutional interest in cryptocurrencies
