BlackRock Sees US Recession As Bullish For Bitcoin – Retail’s Divided As BTC Price Recovers

BlackRock’s head of digital assets, Robbie Mitchnick, believes that Bitcoin (BTC) could perform well during a recession, contrary to what some analysts believe.

In an interview with Yahoo Finance, he explained that during economic downturns, governments usually respond with increased spending, growing deficits, lower interest rates, and monetary stimulus—factors that have historically benefited Bitcoin. 

Mitchnick added that Bitcoin tends to gain interest when people worry about economic or social instability, which can rise during a recession.

However, Bitcoin’s reaction to economic stress isn’t always straightforward. 

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, told The Block that Bitcoin often experiences short-term drops during turbulent periods but tends to rebound strongly once market conditions stabilize. While uncertainty can temporarily push prices lower, his long-term outlook remains bullish.

When Bitcoin first gained mainstream attention, it was often compared to “digital gold” for its perceived ability to store value. 

During the 2008 financial crisis, Bitcoin was still in its infancy. However, by the time of the European debt crisis in the early 2010s, it had begun attracting investors as an alternative to traditional assets.

For example, earlier this month, when fears of a recession – dubbed the "Trumpcession" – grew, Bitcoin's price fell to around $76,000, mirroring broader market declines. 

Analysts say this suggests that many investors still see Bitcoin as a "risk-on" asset rather than a safe haven like gold.

Skeptics, including longtime Bitcoin critic Peter Schiff, warn that if the Nasdaq enters a bear market, Bitcoin could suffer even greater losses, potentially crashing to at least $65,000. Schiff argues that Bitcoin has historically moved in sync with tech stocks, meaning a broader market downturn could trigger a wave of crypto selling.

As of U.S market hours on Thursday, Bitcoin was up 1.9% in the last 24 hours, trading just above $85,000 but still 21.5% below its all-time high of nearly $109,000 in January, according to CoinGecko data.

Bitcoin (BTC) retail sentiment and message volume on March 20 as of 10:10 a.m. ET | Source: Stocktwits    

On Stocktwits, retail sentiment around the apex cryptocurrency improved marginally but remained in ‘neutral’ territory. 

Some traders are concerned that President Donald Trump’s upcoming address at the Digital Asset Summit in New York could put downward pressure on Bitcoin’s price.

Another said they’re cautiously optimistic due to technical factors.

Despite Bitcoin’s 10% decline over the past 30 days, the cryptocurrency remains up more than 25% over the past 12 months.

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Read also: Crypto Traders Bet On Trump’s Digital Asset Summit Address To Be A Market-Moving Event