Professional investors seem to be taking advantage of the current price drop, with many viewing the weak BTC price as an opportunity to accumulate.
Written by: cryptoslate
Translated by: Blockchain Knight
Robbie Mitchnick, Global Head of Digital Assets at BlackRock, stated that despite increased institutional investment in BTC, its price has struggled to reflect the growing demand.
Although large financial institutions continue to embrace BTC, the beginning of 2025 saw significant ETF fund outflows and cautious market sentiment, leading to prices falling below previous highs.
Mitchnick pointed out that while the optimism brought by regulatory policy shifts in Washington initially drove BTC prices up, short-term market behavior and macroeconomic uncertainty have slowed this momentum.
Economic Recession as a Catalyst
On March 18, Mitchnick stated in an interview with Yahoo Finance that BTC's fundamental characteristics of scarcity, decentralization, and independence from traditional monetary systems make it a strong hedge against economic recession.
He further mentioned that a recession in the U.S. economy could become the main catalyst for the next round of BTC price increases.
Mitchnick said, "A recession will be a significant catalyst for BTC. BTC has long-term liquidity, which means it can benefit from increased fiscal spending, accumulated deficits, and low interest rates, all of which are typical features of a recessionary environment."
Mitchnick emphasized that while gold has soared to historic highs amid increasing economic uncertainty, BTC has not shown a similar trend. He attributed this difference to BTC's short-term trading trends, where BTC is often viewed as a risk asset rather than a store of value.
Additionally, he explained that the recent outflows from BTC ETFs were primarily due to hedge funds unwinding spot-futures arbitrage trades, rather than long-term investors exiting the market.
He stressed that despite short-term volatility, institutional confidence in BTC remains strong, stating, "Core long-term holders are still holding firm."
U.S. BTC Reserves
Mitchnick also commented on President Donald Trump's initiative to establish a U.S. strategic BTC reserve, stating that this move strongly indicates support for BTC's unique position in the digital asset space.
However, he noted that the specific details of how the government plans to acquire and manage BTC remain unclear, which does not help alleviate the prevailing uncertainty in the current market.
Mitchnick also pointed out that institutional capital continues to flow into the market. He observed that professional investors seem to be taking advantage of the current price drop, with many viewing the weak BTC price as an opportunity to accumulate.
He said, "Some of the most seasoned BTC accumulators we've spoken to are viewing this drop as an opportunity."
Despite the ongoing regulatory uncertainty and security concerns in the crypto industry, Mitchnick remains optimistic about BTC's long-term position.
He also believes that investors will increasingly view BTC as a tool to hedge against instability in traditional finance, which could potentially drive BTC prices back up in the coming months amid the current economic uncertainty.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
