A potential U.S. recession could trigger Bitcoin’s next bull run due to liquidity injections and fiscal measures, according to Robert Mitchnick, Head of Digital Assets at BlackRock.

“If you look at bitcoin fundamentally on a long-term basis, it really seems like an asset that should be uncorrelated or even inversely correlated against certain risk factors that exist,” BlackRock global head of digital assets Robbie Mitchnick. pic.twitter.com/9HvuxH30vi
— Yahoo Finance (@YahooFinance) March 18, 2025

According to the executive, Bitcoin’s supply shortage, decentralization, and independence position it as a long-term hedge during economic stress.

“Bitcoin will benefit from increased government spending, rising deficits, and lower interest rates—typical recessionary indicators,” he stated.

Mitchnick explained that the sharp outflows from BTC ETFs were driven by hedge funds unwinding arbitrage positions.

“The core holders remain committed,” he noted, citing continued institutional demand.

He also described the initiative to create a Bitcoin strategic reserve as a strong endorsement of its uniqueness, though the government’s accumulation strategies remain unclear.

The expert believes that many professional investors view the current downturn as an opportunity, emphasizing Bitcoin’s long-term role as a portfolio hedge against economic instability.

In September, Mitchnick referred to Bitcoin as a risk-free asset.