Concerns over U.S. debt and deficit are driving investors towards Bitcoin and gold, according to Robert Mitchnick, head of BlackRock’s digital assets division, in an interview with CNBC.
“The level of debt and deficit is a serious concern for the markets. However, the situation benefits assets like Bitcoin and gold,” he explained.
Mitchnick believes investors are increasingly scrutinizing the purchasing power of fiat currencies and seeking alternative savings methods.
The BlackRock executive added that the current macroeconomic situation might explain Bitcoin’s growth even amid waning interest in the CLARITY Act. The document is likely more significant for other segments of the crypto industry than for Bitcoin.
“Markets in general and many ecosystem participants view regulatory clarity as a driver for further growth, but they do not necessarily rely on it or include it in their baseline scenario today,” Mitchnick added.
According to him, beneficiaries in promoting the bill could include areas like decentralized finance.
Mitchnick confirmed that the recent rise in Bitcoin aligns with the cryptocurrency’s cyclical nature. The upward movement occurs when investor sentiment is particularly weak.
“In the past couple of weeks, stocks and other asset classes have faced significant challenges. Bond markets have been unstable, yet Bitcoin has shown considerable growth due to its unique nature and perception as a new store of value,” the BlackRock representative emphasized.
Earlier, CryptoQuant analysts explained the reasons for Bitcoin’s halt at $80,000.
