Blackrock Exec believes that the Bitcoin price does not reflect its strong institutional demand

Institutional investment in Bitcoin (BTC) It is strengthened, but its price struggled to reflect the increasing demand, according to what I mentioned Blackrock’s International Chairman of Digital Assets, Ruby Miching.

Despite the continued adoption of the great financial players, Bitcoin suffered Great ETF flows And a cautious feeling in early 2025, which maintained prices without the previous highlands.

Michnik noticed that market behavior in the short term and total economic certainty has slowed the momentum despite the optimism surrounding the regulatory transformations in Washington at the beginning, paid gains at the beginning,

The recession can be a catalyst

Speaking to Yahoo Finance on March 18, Michnik argued that the basic characteristics of Bitcoin – scarcity, decentralization, and independence from traditional monetary systems – put it as a strong hedging against economic shrinkage.

He also suggested that the American recession could serve as a major incentive in the next bitcoin assembly.

According to Michnik:

“The recession will be a great incentive for bitcoin. It’s long liquidity, which means it benefits from increasing financial spending, deficit accumulation, and low interest rates – all the typical features of the recession environment.”

Michnik highlighted that although gold has risen in the highest registration amid the increasing economic uncertainty, Bitcoin has not reflected this trend yet. This difference has attributed to the short -term trading trends of Bitcoin, as it is often dealt with as the origin of risk rather than storing value.

In addition, he explained that the recent Bitcoin ETF flows were primarily driven by hedge boxes that relax arbitration deals in the argument instead of long -term investors coming out of the market.

And he confirms that the institutional confidence in Bitcoin is still strong despite the short -term fluctuations, saying:

“Long -term holders are still essential.”

American bitcoin reserve

Michnik weighs the president Donald Trump He moved to the creation of the American Bitcoin Strategic Reserve, describing it as a strong signal to support the unique state of BTC within the area of ​​digital assets.

However, he pointed out that the details of how the government plans to gain and manage Bitcoin is still unclear, which does not help in the current uncertainty in the market.

Michnik also pointed out that institutional capital is It is still flowing In the market. He pointed out that professional investors seem to benefit from the current decline, as many treat the twice the price of bitcoin as an opportunity to accumulate.

He said:

“Some of the most developed bitcoin accumulation we talk to treat this decline as an opportunity.”

Despite the ongoing organizational uncertainty and security concerns in the broader encryption industry, Michnik remained optimistic about Bitcoin’s long -term role.

He also argued that investors will increase in the Bitcoin currency as a hedge against traditional financial instability, and may lead a renewed momentum in the coming months amid the uncertain economic scene.

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