Robbie Mitchnick, the head of digital assets at BlackRock, believes that the current price of Bitcoin still undervalues its true worth despite institutional demand growth. In an interview with Yahoo Finance, he emphasized that features like scarcity, decentralization, and independence from the traditional financial system have made Bitcoin a suitable tool to combat economic recession. According to Mitchnick, a potential recession in the US economy could serve as a significant catalyst for Bitcoin’s resurgence. He also added that the recent price drop of Bitcoin was mainly due to short-term investor exits and arbitrage trading, while institutional investors continue to accumulate. Mitchnick welcomed President Trump’s move to create a strategic reserve for Bitcoin but cited the lack of transparency in the execution of this plan as a factor of uncertainty in the market.
