Potential U.S. Recession Could Act as Powerful Driver for Bitcoin's Next Bull Cycle, Says BlackRock's Robbie Mitchnick

Robbie Mitchnick, Global Head of Digital Assets at BlackRock (NASDAQ:BLK), said a potential U.S. recession could act as a powerful driver for Bitcoin's (CRYPTO: BTC) next bull cycle

Robbie Mitchnick, Global Head of Digital Assets at BlackRock (NYSE:BLK), recently offered his insights into the potential drivers of Bitcoin's (CRYPTO: BTC) next bull cycle during an interview with Yahoo Finance.

Mitchnick, a veteran financial services executive with over 20 years of experience, pointed towards a U.S. recession as a key scenario that could set the stage for a Bitcoin bull market.

"If we go into a recession, and I think the probability is increasing, we're going to see the U.S. inject even more liquidity into the market and the fiscal response will be even greater than what we saw during COVID," Mitchnick said.

These actions, in turn, could serve to "really propel Bitcoin into the next bull market," he added.

Mitchnick also touched upon the recent price movements of Bitcoin, noting that while it's often compared to digital gold, its price action hasn't necessarily reflected this over the past year.

"I think we're still in the early innings of this innovation and there's going to be a lot more to come," Mitchnick said.

Later in the interview, Mitchnick addressed the recent outflows from Bitcoin ETFs, which he said were being driven mainly by hedge funds closing out their spot-futures arbitrage trades.

"I don't think the institutional interest in Bitcoin is waning at all. In fact, I think it's increasing with all of the new products and services that are being launched."

Finally, Mitchnick highlighted the approval of several new Bitcoin futures ETFs, which he said were "a testament to the growing demand for efficient and accessible investment products in the digital asset space."

"We believe that these approvals are positive developments for the industry and will ultimately benefit investors who are seeking to allocate capital to this emerging asset class."