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Sujit Kumar
Mar 21, 2025
by Sujit Kumar

Bitcoin May Thrive in Recession, Says BlackRock’s Digital Asset Head

Bitcoin May Thrive in Recession

Table of contents

  1. Institutional Confidence Remains High
  2. Recession Could Fuel Bitcoin Demand
Bitcoin is once again being tested as a potential safe-haven asset, especially with growing recessionary fears in the U.S. At the time of writing, BTC trades around $85,387, up 2.3% in the last 24 hours, despite inflows dropping by 54% from 58.6K BTC/day to 26.9K BTC/day.

Amid this mixed sentiment, BlackRock’s Head of Digital Assets Robbie Mitchnick believes Bitcoin could benefit during a recession, citing factors like fiscal stimulus, lower interest rates, and monetary easing — all typically associated with economic downturns.

Institutional Confidence Remains High

Through its iShares Bitcoin Trust ETF (IBIT), BlackRock holds a substantial 570,582 BTC, adding 22,076 BTC just this year. Even after a dip below $80K on March 10, Mitchnick attributed the move to "premature expectations" surrounding economic recovery and underestimated recession risks.

Despite market corrections, $218.10 million in monthly inflows into IBIT underscores BlackRock’s bullish stance on Bitcoin’s long-term value proposition.

Recession Could Fuel Bitcoin Demand

As the FOMC adopts a cautious stance, concerns over a potential recession have resurfaced. Economic slowdowns typically lead to liquidity injections via rate cuts, which often favor risk-on assets like Bitcoin.

While Bitcoin is still down 22% from its all-time high of $109K, easing inflation and a possible deeper market correction could set the stage for a stronger rally — aligning with BlackRock’s bullish thesis for a post-recession surge.

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Bitcoin May Thrive in Recession
Bitcoin May Thrive in Recession, Says BlackRock’s Digital Asset Head
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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