Bitcoin (BTC) has recently been stuck in consolidation around $80,000 as investors await the next crypto catalyst after the White House Crypto Summit failed to spark a rally for Bitcoin and altcoins.
At this point, BlackRock Global Head of Digital Assets Robbie Mitchnick offered a different perspective on the expected catalyst.
Speaking to Yahoo Finance, Robbie Mitchnick stated that contrary to expectations, a possible recession would actually be a major catalyst for Bitcoin.
Arguing that Bitcoin’s fundamentals are uncorrelated or even inversely correlated with fundamental risk factors, the BlackRock executive claimed that recessions and economic downturns could drive investors to Bitcoin as a hedge against inflation and currency devaluation.
As traditional markets face uncertainty, investors are eventually looking for alternative stores of value and are increasingly turning to riskier assets like Bitcoin, according to Mitchnick.
“If you look at Bitcoin fundamentally over the long term, it seems like an asset that should be indifferent or even inversely correlated to certain risk factors that exist. But in the short term, there can be correlation increases.
It is stated that tariffs, one of the most talked about topics in recent times, have a negative impact on the price of Bitcoin, but these claims have no basis. Or it is claimed that economic fears are damaging Bitcoin.
However, in my opinion, a possible recession could be a huge bullish catalyst for Bitcoin.”
Mitchnick finally stated that he remains optimistic about the Bitcoin price, saying that institutional adoption of Bitcoin has not yet been priced in.
*This is not investment advice.