BlackRock: Recession Could Ignite Bitcoin

This happened during an appearance on Yahoo Finance’s Market Domination Overtime.

Mitchnick suggested that a recession could be the next “big catalyst” for Bitcoin, sending ripples through the crypto community and Wall Street alike.

Bitcoin’s Volatility: Can It Thrive During Economic Downturns?

With Bitcoin hovering around $82,110.36—down 2.96% in the past 24 hours and 14.96% over the month. This makes investors sit up and take notice. It spans late February to mid-March 2025, and paints a volatile picture: Bitcoin’s price dipped below $90,000, fluctuated wildly, and now teeters near $80,000. This downturn aligns with broader market jitters, as seen in the modest gains of the S&P 500 (1.07%) and Nasdaq (1.71%) juxtaposed against a slight NYSE decline (0.41%). Mitchnick’s assertion challenges conventional wisdom, which often views recessions as kryptonite for risky assets like crypto. Instead, he argues that economic downturns could drive investors to Bitcoin as a “digital gold”—a hedge against inflation and currency devaluation.

“Why would a recession boost Bitcoin?” you might ask. Well, Mitchnick’s logic hinges on Bitcoin’s decentralized nature and its appeal as a store of value during turbulent times. As traditional markets falter, he believes savvy investors might “jump on the bandwagon”. It seeks refuge in crypto’s promise of autonomy from government-controlled currencies.

More About BlackRock

On March 19, 2025, BlackRock made headlines by purchasing 2,660 Bitcoin, marking the largest inflow into its iShares Bitcoin Trust (IBIT) in six weeks. Complementing this move, the attached chart of IBIT Bitcoin inflows reveals a compelling trend: since January 2024, the fund has seen a steady rise in total Bitcoin holdings, reaching 580,578.3K by March 2025—a staggering increase from 33.4K at the start of 2024.

Daily inflows, shown in green, have fluctuated, with notable peaks like 14.6K in late 2024. Several instances of 6K to 12.6K throughout the year, though occasional outflows, such as a 3.4K dip. This highlights the market’s ups and downs. This data reflects BlackRock’s strategic accumulation of Bitcoin, positioning it as a major player in the crypto space.

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