Robbie Mitchnick, a BlackRock executive, believes that Bitcoin will benefit from a macroeconomic downturn despite some experts’ contrasting arguments.
How A US Recession Will Positively Affect Bitcoin’s Price – BlackRock Executive
BlackRock executive Robbie Mitchnick stated in a recent interview that a recession would be a big boost for Bitcoin (BTC), although he doesn’t know if there will be one. According to Mitchnick, higher fiscal spending, debt accumulation, lower interest rates, and monetary stimulus—all of which typically occur during recessions—would positively influence BTC’s price.
According to the BlackRock executive, many still consider Bitcoin a risky asset, and the market is “not particularly well calibrated” to it. Mitchnick also argued that assets like stocks, commodities, and high-yield bonds typically do poorly during economic downturns.
Hence, the public needs to be informed more about this relatively new market and asset category. Coinbase analysts, on the other hand, expressed less optimism, stating that concerns about the recession and the recent tariffs had dampened the cryptocurrency market’s optimistic projections for the first quarter.
In its latest monthly forecast report, Coinbase Institutional stated that sentiment had turned sharply due to fears of a significant US economic slump or recession. By holding the largest net assets of any Bitcoin funds, BlackRock’s iShares Bitcoin Trust (IBIT) ETF has been instrumental in the institutional adoption of Bitcoin.
Also read:With its current price of $86,000, BTC’s price has increased 3.8% in the past day.
Can ETF Inflows Shoot Bitcoin Past $90K As the BlackRock Bitcoin ETF Hits A 6-Week High?
With the BlackRock Bitcoin ETF inflows reaching their highest level in six weeks, the main focus is on Bitcoin’s price movement. IBIT recently added 2,660 BTC (worth roughly $217M) to its holdings.
This increase in inflows suggests a renewed interest from institutional buyers. Traders and investors are monitoring whether this demand will drive Bitcoin toward the anticipated $90K level.
Furthermore, IBIT’s BTC trade volume surged to $1.6 billion, indicating increased investor confidence. The significant increase in the trading volume suggests that market participants are closely observing Bitcoin’s price movement.
This renewed interest begs the question: will this momentum help Bitcoin recover to the $90K mark, or will it be short-term stalled by persistent resistance and broader market requirements?
Is Institutional Demand Fueling the Growth of Bitcoin?
Long-term holders continue to accumulate BTC during market downturns, indicating their confidence in the asset even though its price remains unstable. According to on-chain data, Bitcoin’s transaction volume among institutional and long-term traders was worth $14 billion over the past month.
Despite short-term volatility, this volume shows a firm trust in Bitcoin’s long-term growth. Meanwhile, MicroStrategy (now “Strategy”) intends to raise $500 million to purchase additional Bitcoin, further solidifying its role as a primary corporate BTC holder. This move could further boost institutional demand.
Despite huge inflows into ETFs, BTC’s price has yet to break past $83K. Analysts estimate that if Bitcoin doesn’t stay above $80,000, it could drop to its next crucial support level ($75,000).
A break below this level might heighten bearish sentiment and trigger more corrections. However, the leading cryptocurrency can reach new highs and establish a longer upward trend by breaking through the resistances at $84,000 and $91,000.
Market Dynamics and Possible Bitcoin Price Action
Several macroeconomic factors influence trends in the cryptocurrency market, including the BTC market. A recent example is the Federal Reserve’s interest rate decision on Wednesday.
Any changes to financial insurance could also cause market turbulence, influencing investor mood in the weeks ahead. The Trump tariff dispute has also fueled speculation, increased uncertainty, and fluctuations in Bitcoin’s price.
Bitwise CIO Matt Hougan remains optimistic despite these obstacles, predicting that Bitcoin should eventually reach $1 million. Many long-term buyers who view Bitcoin as a hedge over economic volatility share this opinion.
The rebound in inflows into Bitcoin ETFs signifies Bitcoin’s role in the digital economy and reflects renewed institutional interest.
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