Bitcoin (BTC) has recently been caught up in a roughly $80,000 consolidation as investors await their next crypto catalyst after the White House Crypto Summit failed to trigger a Bitcoin and Altcoin rally.
At this point, BlackRock Global Head of Digital Assets Robbie Mitchnick provided a different perspective on the expected catalyst.
Speaking to Yahoo Finance, Robbie Mitchnick said, contrary to expectations, the possibility of a recession would actually be a major catalyst for Bitcoin.
Arguing that the basics of Bitcoin are uncorrelated or inversely correlated with basic risk factors, BlackRock executives argued that the recession and economic downturn could drive investors to Bitcoin as a hedge against inflation and currency devaluation.
According to Mitchnick, as traditional markets face uncertainty, investors are ultimately looking for value alternatives, increasingly relying on high-risk assets like Bitcoin.
“If you look at Bitcoin fundamentally in the long run, it seems like an asset that is indifferent or inversely correlated with certain risk factors that exist. However, in the short term, there can be an increase in correlation.
One of the most talked about tariffs on recent topics has a negative impact on Bitcoin prices, but these claims have been stated to be unfounded. Or it is allegedly claimed that economic fear is causing damage to Bitcoin.
But in my opinion, the possibility of a recession could be a huge bullish catalyst for Bitcoin. ”
Mitchinick finally said he was optimistic about the price of Bitcoin and that the institutional adoption of Bitcoin is still unavailable.
*This is not investment advice.
