BlackRock Global Head of Digital Assets Robbie Mitchnick said a potential US recession could be a major driver of Bitcoin’s future growth cycle. Mitchnick emphasized that liquidity injections and fiscal responses in particular could have a decisive impact on Bitcoin and the overall cryptocurrency market.
In an interview with Yahoo Finance, Mitchnick said that Bitcoin has historically been considered “digital gold,” but recent price action has failed to live up to that reputation. He added that the cryptocurrency market has an optimistic outlook on the pace of deregulation expectations and other catalysts.
Making predictions about the coming years, Mitchnick stated that although he expects Bitcoin to show a significant rise in late 2024, modest ETF outflows and cautious market sentiment will be effective in early 2025. He argued that Bitcoin’s basic features such as scarcity, decentralization and independence from traditional financial systems have gained importance as a long-term protection tool in times of economic difficulties.
Mitchnick said, “A recession will be a big catalyst for Bitcoin,” and expressed that Bitcoin’s long-term liquidity can benefit from increased financial spending, savings and low interest rates. He stated that this situation is typical of recession periods. As a result, Bitcoin can stand out as a safe haven for investors in economic stress.
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