BlackRock executive: BTC price does not reflect strong institutional demand

Author: cryptoslate; Compiler: Blockchain Knight

Robbie Mitchnick, global head of digital assets at BlackRock, said that despite the increase in institutional investment in BTC, its price has failed to reflect the growing demand.

Despite the continued acceptance of BTC by large financial institutions, BTC suffered a large outflow of ETF funds and cautious market sentiment in early 2025, causing prices to be lower than previous highs.

Mitchnick pointed out that although optimism brought about by the shift in Washington's regulatory policy initially drove BTC up, short-term market behavior and macroeconomic uncertainty slowed the momentum.

Economic recession may be a catalyst

In an interview with Yahoo Finance on March 18, Mitchnick said that the basic characteristics of BTC are scarcity, decentralization and independence from the traditional monetary system, making it a powerful hedge against economic recession.

He further stated that a US recession could be the main catalyst for the next round of BTC gains.

Mitchnick said: "Economic recession will be a big catalyst for BTC. BTC has long-term liquidity, which means it can benefit from increased fiscal spending, accumulated deficits and low interest rates, which are typical characteristics of a recessionary environment."

Mitchnick emphasized that while gold has soared to an all-time high against the backdrop of increasing economic uncertainty, BTC has not yet shown a similar trend. He attributed this difference to BTC's short-term trading trend, that is, BTC is often regarded as a risky asset rather than a store of value.

In addition, he explained that the recent BTC ETF outflows were mainly due to hedge funds unwinding spot-futures arbitrage trades, rather than long-term investors exiting the market.

He emphasized that despite short-term volatility, institutional confidence in BTC remains strong, saying: "Core long-term holders are still holding on."

US BTC Reserves

Mitchnick also expressed his views on President Donald Trump's move to establish a US strategic BTC reserve, saying that the move strongly demonstrates 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 are still unclear, which does not help alleviate the uncertainty that is prevalent in the current market.

Mitchnick also pointed out that institutional capital is still flowing into the market. He noticed that professional investors seem to be taking advantage of the current price drop, and many see the weakness in BTC prices as an opportunity to accumulate chips.

"Some of the most senior BTC accumulators we have spoken to are looking at this decline as an opportunity," he said.

Despite the regulatory uncertainty and security concerns that remain 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 the instability of traditional finance, which has the potential to drive BTC prices back up in the coming months amid the current economic uncertainty.