US recession would be a big catalyst for Bitcoin: BlackRock
Bitcoin would be a big winner from a potential US recession as it’s built to thrive in a high fiscal spending, low interest rate environment, says a BlackRock executive.
BlackRock’s head of digital assets, Robbie Mitchnick, says that Bitcoin will most likely thrive in a recessionary macro environment, contrary to what some analysts may think.
“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 said Bitcoin (BTC) is catalyzed by increased fiscal spending, deficit accumulation, lower interest rates and monetary stimulus — all of which tend to happen in recessions.
“And it’s catalyzed to some extent over fears of general social disorder,” Mitchnick pointed out. “And that too, unfortunately, is something that can happen in a recession.”
