BlackRock Believes US Recession May Help Bitcoin Grow

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BlackRock’s head of digital assets, Robbie Mitchnick, believes Bitcoin has the potential to thrive in a recessionary macro environment, contrary to some analysts’ opinions.

In a March 19 interview with Yahoo Finance, Mitchnick stated:

“Whether or not we face a recession, such an event would be a significant catalyst for Bitcoin.”

He explained that Bitcoin benefits from increased fiscal spending, growing deficits, lower interest rates, and monetary stimulus—factors typically associated with recessions.

Mitchnick also noted, “It’s driven partly by fears of general social disorder,” which can unfortunately arise during a recession.

He highlighted that the market is “not particularly well-calibrated” to Bitcoin, with many viewing it as a risk-on asset. While risk-on assets like stocks, commodities, and high-yield bonds typically suffer during economic crises, Mitchnick remarked in September that he considers Bitcoin to be mislabeled in this regard.