In the latest Bitcoin news, the world’s leading cryptocurrency has been on a steep decline since its all-time high during President Donald Trump’s inauguration ceremony in January 20.
The U.S. economy teeters on the edge. GDP is estimated to plummet by 2.8% in Q1 2025 according to the Federal Reserve Bank of Atlanta’s GDP forecasting model.
U.S. unemployment rate increased to 4.1% in February 2025 from 4.0% in January 2025, the highest since December 2023, per the Bureau of Labor Statistics.
Amid these warning signs, Bitcoin lingers at $83,550, down nearly 24% from its January 20 peak of $108,500.
Yet, Robbie Mitchnick, BlackRock’s Global Head of Digital Assets, sees opportunity in the gloom. He predicts a recession could trigger Bitcoin’s next big rally.
Markets hate uncertainty. The latest economic figures paint a troubling picture. That 2.8% GDP growth rate contraction in early 2025 marks the weakest quarterly performance since Q2 2022.
The unemployment uptick to 4.1% reflects a cooling labor market, with 200,000 more Americans out of work compared to six months prior, per BLS data.
Economists now peg the odds of a recession by mid-2025 at 36%, up from 23% last fall. Investors are jittery, and traditional safe havens like gold are soaring.
Bitcoin News: Blackrock’s Mitchnick
As BlackRock’s digital asset chief, Robbie Mitchnick oversees the firm’s growing crypto portfolio, including its Bitcoin ETF launched in 2023.
In a Yahoo Finance interview on March 19, he laid out his thesis: a recession could propel Bitcoin higher. “It’s long liquidity,” Mitchnick said.
He means Bitcoin thrives when governments and central banks flood the system with cash—think deficit spending, stimulus checks, and slashed interest rates. These are hallmarks of recession-fighting policy.
Bitcoin’s fixed supply of 21 million coins and its decentralized structure make it immune to the money-printing that erodes fiat currencies, he argued.
BTC price hasn’t exactly roared lately according to the latest Bitcoin news. After hitting $108,000 in late January 2024, it shed gains fast.
At the time of writing, Bitcoin is trading at $84,136.51, per CoinMarketCap. Bitcoin ETFs tell a similar story— U.S.-based Bitcoin ETFs have been overwhelmed with substantial outflows since the Trump trade tariffs.
Mitchnick chalked this up to hedge funds unwinding complex trades, not a broader retreat. “The core long-term holders are still in,” he said.
Still, Bitcoin’s sluggishness contrasts sharply with gold’s climb, a point Mitchnick conceded.
He noted Bitcoin’s short-term ties to riskier assets like stocks have masked its deeper value.
U.S. Political Boost
Washington’s moves could shift the tide. In January 2025, the Trump administration launched a U.S. Strategic Bitcoin Reserve. Details are thin—how much Bitcoin, and how they’ll buy it, remain unclear.
But Mitchnick called it “a strong signal of support” for Bitcoin’s role in finance. Announced amid rising economic unease, the reserve underscores Bitcoin’s growing legitimacy. It’s a nod from policymakers that could sway investor sentiment.
Bitcoin’s fate hangs on the economy. If recession hits, Mitchnick’s bet is that liquidity floods will lift the crypto’s price.
Its scarcity—capped at 21 million coins—sets it apart from inflationary currencies. Gold’s rally shows demand for hedges is rising.
Bitcoin, down but not out, could follow if Mitchnick’s right. For now, the market watches the data—and waits.
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