Bitcoin could benefit significantly from a potential US recession, as it is positioned to thrive in a high fiscal spending, low interest rate environment, according to a BlackRock executive.
Robbie Mitchnick, BlackRock’s head of digital assets, stated that Bitcoin is likely to perform well in a recessionary environment, contrary to the belief held by some analysts.
“I don’t know if we’ll have a recession or not, but a recession would be a big catalyst for Bitcoin,” Mitchnick said in a March 19 interview with Yahoo Finance.
Mitchnick explained that Bitcoin tends to benefit from increased government spending, growing deficits, lower interest rates, and monetary stimulus — all common responses to a recession.
“It’s also driven, to some extent, by fears of social instability,” Mitchnick added. “Unfortunately, that’s another factor that can emerge during a recession.”
He noted that the market still misunderstands Bitcoin, with many investors viewing it as a risk-on asset like stocks and commodities, which typically struggle during economic downturns. Mitchnick believes this perception creates an opportunity to educate the market about Bitcoin’s unique role.
“That’s where the opportunity lies — in a market and asset class that’s still very early in its development,” he said.
BlackRock has been working with clients to navigate these conflicting views. Mitchnick mentioned that some of BlackRock’s more experienced, long-term Bitcoin holders view the current market correction as a buying opportunity and remain unfazed by broader economic challenges.
Meanwhile, researchers at Coinbase have expressed a more cautious outlook. In a March 17 report, Coinbase Institutional noted that crypto’s positive start to the year had been “clearly misplaced” due to recession fears and new tariffs.
“Concerns over a sharp US economic slowdown or recession have caused sentiment to turn negative,” the report stated.
BlackRock has played a key role in increasing institutional adoption of Bitcoin through its iShares Bitcoin Trust ETF, which currently holds $48.7 billion in assets — making it the largest Bitcoin investment product by net assets.
Mitchnick downplayed recent outflows from spot Bitcoin ETFs, explaining that most withdrawals were tied to hedge funds unwinding arbitrage trades rather than long-term investors selling off holdings.
Bitcoin is currently trading at $86,000, up 3.8% in the past 24 hours.
