Recent statements by BlackRock's head of digital assets, Robbie Mitchnik, give food for thought: can bitcoin benefit from the recession in the United States? In his opinion, the economic downturn can be a serious catalyst for the growth of cryptocurrencies.
Why can a Recession Help Bitcoin?
Mitchnik identifies several factors that may contribute to the growth of bitcoin during the crisis period.:
1) Increased government spending – Governments usually seek to stimulate the economy during a downturn.
2) Budget deficit accumulation – debts are growing, and investors are looking for protective assets.
3) Lower interest rates – traditional financial instruments are becoming less attractive.
4) Monetary stimulus – An increase in the money supply may increase interest in alternative assets such as bitcoin.
In addition, recessions are often accompanied by social unrest, which can lead people to seek more independent financial instruments.
The market has not yet realized the potential of Bitcoin
According to Mitchnik, many investors still perceive bitcoin as a risky asset, although it can be more protective than a speculative instrument. He compares it to traditional assets (stocks, commodities, bonds) and believes that bitcoin shows less correlation with them, especially in the long run.
Institutional implementation
BlackRock is actively involved in the development of the crypto industry. In particular, their iShares Bitcoin Trust ETF (IBIT) fund has already accumulated the largest net assets among spot bitcoin ETFs - 48.7 billion dollars. This suggests that the interest in bitcoin from major players continues to grow.
What do you think?
If Bitcoin is truly capable of thriving in a recession, does this mean that it is becoming the new "digital gold"? Or does its high volatility still make it too risky to save capital?