You know that giant corporations called Black Rock which is now very interested in Bitcoin for obvious reasons?
The company sees recession as a golden ticket for Bitcoin. It's quite an opinion from them but it's not exactly a new thing. Every financial crisis since 2008 has sent people searching in pure anxiety for alternatives.
All the stimulus packages, the mounting debt of America and also the central bank moves make the fiat currency look like it could go south.
And this is the reason why Bitcoin has a brighter future, or could be a solution when Fiat actually goes South.
Crypto to a lot of investors for years has been more of an escape hatch or let me say the anti crash shield against poor performing fiat.
A lot of people saw the potency of the fiat messing up in 2020 when money printing hit insane levels. At that same time the price of Bitcoin soared.
BlackRock’s own, Robbie Mitchnick also gave some hints at something nastier happening. There's a possibility of social disorder.
If a recession will fuel Bitcoin price, it’s not just because people are looking for a hedge, but it’s also because trust in the whole system crumbles.
That’s a different game from hedge. It’s not just numbers on a screen, it’s people losing faith in institutions, in the economy and in stability itself.
Bitcoin tends to thrive when everything else looks doomed. And that attribute of Bitcoin is a double edged sword.
Then there’s the Fed. Powell is not exactly handing out free money. There's no quick rate cuts, there's no easy liquidity. Bitcoin essentially feeds on cheap credit, and right now, unfortunately that tap is dry.
It's a sad thing to say though but the reality is that inflation isn’t going away and Powell knows it. There's no rescue missions and no safety net. This throws a huge wrench in BlackRock’s vision of a Bitcoin fueled recession.
The institutions clearly want the Bitcoin and we saw adoption happening during the bull run, but they also fear the uncertainty of what could happen to their investments knowing how unpredictable crypto can be.
And that's the main reason why when you observe their financial moves regarding Bitcoin, they actually look like they're hesitating
Bitcoin ETFs exploded not too long ago but then slowed down. Don't get me wrong though, money is still flowing, but it’s cautious now. Just like Michael Saylor, BlackRock stands firm to their beliefs despite the situation. They see Bitcoin as a bet against an eventual mess up of the fiat. Maybe they’re right. But another school of thought would be that these guys are just too deep in the game to admit otherwise.
Posted Using INLEO