A BlackRock executive anticipates that the price of Bitcoin will increase in accordance with its growing institutional adoption.
Robbie Mitchnick, BlackRock chief of digital assets, stated that Bitcoin remains 15% above its early November levels, despite recent price declines. He raised this point during an interview with Yahoo Finance on Wednesday.
He believes that the cryptocurrency’s current value does not accurately reflect the number of significant institutions that are currently purchasing it.
The market has not yet caught up to reality, he stated in an interview with Yahoo Finance. Mitchnick anticipates that the flagship crypto’s value will experience substantial growth once prices are in accordance with this institutional interest.
JUST IN: BlackRock’s Head of Digital Assets says #Bitcoin’s Institutional adoption still isn’t reflected in the price.
The new marketing team is here pic.twitter.com/EZHP1uFYX5
— Bitcoin Magazine (@BitcoinMagazine) March 19, 2025
Trump’s Bitcoin Reserve Order Hasn’t Sparked Expected Price Surge
United States President Donald Trump recently issued an executive order that established a US Strategic Bitcoin Reserve. Numerous market observers anticipated that this would result in an instantaneous surge in crypto prices.
In contrast, the cryptocurrency’s value has declined since the announcement. Mitchnick elucidated this discrepancy by asserting that individuals anticipated early substantial outcomes from these market developments.
Premature expectations regarding the speed at which these favorable factors would influence prices were present, he stated. The BlackRock executive proposed that the market requires additional time to completely respond to these developments.
BlackRock Continues Push For Institutional Bitcoin Investment
Even as Bitcoin prices fluctuate, BlackRock has been exerting significant effort to encourage additional financial institutions and wealth managers to invest in its product. Mitchnick asserts that these endeavors are yielding results.
Major financial institutions, such as Barclays, JPMorgan, and Avenir Group, now possess substantial quantities of BlackRock’s iShares BTC Trust (IBIT), which monitors Bitcoin’s price, according to recent filings.
Recession Could Help Bitcoin In The Long Run
During the recent market uncertainty, Mitchnick attributed the lack of stability in Bitcoin to perception rather than actuality when asked why it has not been as stable as gold.
He characterized Bitcoin’s recent association with risky assets as “self-inflicted,” a consequence of market observers’ persistent designation of it as a risk-on asset. His analysis indicates that Bitcoin’s fundamental characteristics should cause it to move in opposition to market risks, akin to gold.
Meanwhile, Mitchnick disclosed that Bitcoin may actually benefit from a recession. He enumerated a number of economic downturns that are well-suited to Bitcoin’s characteristics, including increased government expenditure, reduced interest rates, stimulus money, and concerns regarding social stability.
Featured image from Gemini Imagen, chart from TradingView
Source: NewsBTC