BlackRock Executive: Bitcoin's Price Does Not Reflect Strong Institutional Demand
Robbie Mitchnick, Global Head of Digital Assets at BlackRock, recently stated that institutional investment in Bitcoin has strengthened, yet Bitcoin's price struggles to reflect this growing demand. He believes that short-term market behavior and macroeconomic uncertainty are the main reasons for this phenomenon.
On March 18, Mitchnick pointed out in an interview with Yahoo Finance that Bitcoin's scarcity, decentralization, and independence from traditional monetary systems make it a robust hedge against economic downturns, and a U.S. economic recession could act as a catalyst for Bitcoin's rise.
He also noted that despite soaring gold prices amid economic uncertainty, Bitcoin has not shown a similar trend, as Bitcoin is often viewed as a risk asset rather than a store of value.
Additionally, the significant outflow of funds from Bitcoin ETFs in recent weeks is primarily due to hedge funds closing their cash-and-carry arbitrage trades, rather than long-term investors exiting the market. Meanwhile, core long-term holders remain steadfast.
At the same time, institutional capital continues to flow into the market, with many professional investors viewing this round of declines as an accumulation opportunity. Despite regulatory uncertainties and security issues in the crypto industry, he remains optimistic about Bitcoin's long-term value.
He even predicts that investors will increasingly view Bitcoin as a tool to hedge against traditional financial risks, which could become a new momentum for Bitcoin's next round of increases amid economic uncertainty in the coming months.
Overall, BlackRock executives believe that Bitcoin's price has not yet reflected strong institutional demand, and an economic recession could act as a catalyst for Bitcoin's rise.
Therefore, despite the market being filled with uncertainty due to this adverse factor, institutional investors’ confidence in Bitcoin remains strong.
Do you think that Bitcoin's price will truly catch up with institutional demand in the coming weeks? Will an economic recession really become a catalyst for Bitcoin? Leave your thoughts in the comments!
