BlackRock Predicts Bitcoin (BTC) Surge if U.S. Recession Hits

The cryptocurrency industry has experienced increased growth over the years. A number of factors have influenced this uptick. From internal changes to macroeconomic and geopolitical shifts, the Bitcoin (BTC) market has stepped up or fallen down due to this. The king coin has often been portrayed as a hedge against inflation and other economic crises. More recently, the head of digital assets at BlackRock noted how Bitcoin could surge if the United States is hit with a recession.

Will BTC Benefit From A Recession?

Robbie Mitchnick, head of digital assets at BlackRock, believes that Bitcoin would probably prosper in a recessionary macro environment. According to Mitchnick, monetary stimulation, reduced interest rates, deficit buildup, and greater fiscal spending are what drive Bitcoin. It should be noted that these activities mostly occur during a recession. He added,

The BlackRock executive also pointed out how many people still consider Bitcoin to be a risky asset. He noted that the market isto the king coin. In addition, during economic downturns, riskier assets like equities, commodities, and high-yield bonds often do poorly. But things do change. Mitchnick stated in September that he thought the asset was mislabeled.

Bitcoin’s Current Market

Over the past 24 hours, the king coin recorded a nearly 2% surge. At the time of writing, Bitcoin was trading at $85,326.84. Earlier this year, the world’s largest cryptocurrency managed to rise to a high of $109,114.88. Currently, BTC is 21% below this peak.