Summary
- BlackRock analyzed that a US recession could have a positive impact on Bitcoin prices.
- Robbie Mitchnick of BlackRock stated that a recession will be a big catalyst for Bitcoin.
- Some BlackRock clients view the current economic headwinds as a buying opportunity despite the market downturn.
Global asset management firm BlackRock has analyzed that a recession in the United States could positively impact the price of Bitcoin (BTC).
Robbie Mitchnick, BlackRock's Global Head of Digital Assets, stated in an interview with Yahoo Finance on the 19th (local time) that "a recession will be a big catalyst for Bitcoin." He explained that "(Bitcoin prices are) driven by factors such as increased fiscal spending, accumulated deficits, low interest rates, and monetary stimulus," and "these factors are generally characteristic of a recession."
He also mentioned the recent outflow of funds from Bitcoin spot ETFs. Mitchnick explained that "(ETF outflows) did not occur because long-term investors were selling," and "(the outflows) mainly occurred as hedge funds unwound arbitrage positions between spot and futures." He added, "Some of BlackRock's clients who view Bitcoin in the long term are not overly concerned about the current economic headwinds and see the market downturn as a buying opportunity."
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
