Degen

Robbie Mitchnick, head of digital assets at BlackRock, believes that the current price of Bitcoin is still far from its true value, despite the growth in institutional demand.

In an interview with Yahoo Finance, he emphasized that features such as scarcity, decentralization and independence from the traditional financial system make Bitcoin a suitable tool for dealing with an economic downturn.

According to Mitchnick, a possible recession in the US economy could be an important driver for Bitcoin’s resurgence. He also added that the recent decline in Bitcoin’s price was largely due to the outflow of short-term investors and arbitrage trading, while institutional investors continue to accumulate it.

Mitchnick welcomed President Trump’s move to create a strategic reserve of Bitcoin, but considered the lack of transparency in how the plan will be implemented to be a factor in the uncertainty in the market.