BlackRock’s Bold Prediction: Will Bitcoin Hit $87K as the Ultimate Recession Hedge?
According to BlackRock, institutional interest in Bitcoin will increase during downturns, changing its place in investment portfolios and making it a recession hedge.
Investors are looking at alternative assets to protect their portfolios as economic questions threaten. Often known as “digital gold,” Bitcoin is starting to be seen as a possibility to hedge against economic downturn pressures. Just a few days ago, BlackRock’s head of digital assets, Robbie Mitchnick, remarked on this. A large driver for Bitcoin might be the recession since it would provoke more institutional curiosity. This point of view contradicts the conventional opinion of Bitcoin as a high-risk asset, instead presenting it as a reasonable store of value for financial turmoil. Given financial instability, the changing story reinforces Bitcoin’s possibility of being used in diversified investment plans.
Historically, safe havens during financial crises have included such assets as gold. Nonetheless, Bitcoin’s decentralized nature and fixed supply provide special qualities that attract those looking for alternatives. Under such recessionary conditions—characterized by high government expenditure and low interest rates—Bitcoin could boom as people search for assets uncorrelated with conventional markets, making it the best recession hedge. Rising institutional acceptance and major asset managers appreciating Bitcoin’s ability to spread investments and reduce risks linked with economic downturns help further support this change in perspective.
The largest asset manager in the globe, BlackRock, has been aggressively looking for opportunities inside the digital asset sector. The strategic positioning of the company mirrors a larger shift among institutional investors who see Bitcoin as a potential asset class. Mitchnick’s views on Bitcoin’s possibilities during a recession fit BlackRock’s efforts in including digital assets into their portfolio. This institutional approval not only validates Bitcoin but also indicates a transformation in the investment approach whereby conventional financial institutions accept the value proposition of cryptocurrencies in hedging against economic risks.
Let’s take a look to see if the chart of Bitcoin tells the same story about Bitcoin price prediction or not. The chart shows BTC trading at $85,583.90 on March 20, 2025, creating a converging triangle pattern following a breakout from the previous consolidation. Though the price rose above resistance levels first, it met sellers near $87,250, which caused a pullback. With an RSI of 41, which shows neutral to bearish momentum, bitcoin is neither overbought nor oversold. With the signal line crossing under the MACD line, which suggests declining momentum, the MACD indicator is negative. Depending on market sentiment and volume, the existing converging triangle could cause a breakout in either direction.
Bitcoin could try another rally if it holds support anywhere around $85,150. Previously a demand region, the key support level is in the range of $83,850–$84,000. Bitcoin could test this support before any possible rebound if it breaks under the present consolidation pattern. On the other hand, a breakout above the resistance of the converging triangle could drive BTC toward $86,350 to finally retest $87,250. For trend confirmation, traders ought to keep an eye on RSI and MACD crossovers.
Particularly among institutional investors, Bitcoin’s changing use as a recession hedge is starting to gain traction. BlackRock’s strategic emphasis on Bitcoin shows a change in conventional investment methods as well as possible value in times of financial stress. Although the instability of Bitcoin is still worrying, its scarcity and decentralized character make it an appealing substitute for fiat-based assets. Bitcoin’s legitimacy as a recession hedge remains to strengthen with increasing institutional interest, therefore affecting its future as a popular financial asset.
The Bitcoin price is down 2% in the past 24 hours and is trading below the $85,000 level as of March 21, 2025. Given Bitcoin's close correlation with the equities markets lately, it could be moving lower in lockstep with stocks. Of course, this means it is not operating fully in the way it was designed as a non-correlated asset and inflation hedge for investors at the moment. Instead, it is taking its cue from a stock market that is mired in extreme fear, owing to tariffs and the risk of an economic slowdown.
President Trump was a presenter at the Digital Asset Summit in New York, saying he wants to make America the “undisputed bitcoin superpower and the crypto capital of the world.” While his comments were well received in the crypto community, they did little to lift the BTC price. With a market cap of $1.6 trillion, bitcoin currently has a dominance rate of 60.7% over the broader crypto market with ether at a distant second at 8.6%. The bitcoin price remains a far cry from its all-time high of over $109,000 - 23% below its peak to be exact.
It's been nearly a year since the last bitcoin halving. As Jesse Myers, a Stanford MBA making slides about bitcoin, explained, it would take about 12 months from the halving “before bitcoin's price really starts to run.” He also advises investors to “buckle up” because that time is almost here.
According to a report in Bitcoin Magazine, the bitcoin price could just be gearing up for its next bull market run. The pioneering crypto site sees similarities between the current bitcoin market and that of the 2017 bull market cycle, suggesting the BTC bulls could be digging in their heels. In the 2015-2017 crypto cycle, the bitcoin price climbed to $20,000 for the first time. In the 2022-2025 cycle, there are “striking similarities,” but the bitcoin price has not made any fresh all-time highs, at least not yet.
If Michael Saylor's prediction is any indication, the bitcoin price hasn't even scratched the surface of its potential. Saylor, the founder of tech company MicroStrategy, says he could envision the bitcoin price rising to $13 million in 20 years, adding that there's not a stock in the market that he believes would do the same. Carl Moon of “The Moon Show” pointed out that bitcoin remains in the very early innings in terms of mainstream adoption, with a 3% adoption rate as of 2025. You could say it's at the stage of the internet in 1990, online banking in the mid-nineties, or social media in 2025.
Whether there is a bitcoin bull market around the corner remains to be seen. For now, the bearish sentiment from the stock market appears to be holding bitcoin back. Meanwhile, the gold price has just set a fresh all-time high above $3,000 per ounce. Bitcoin is known as digital gold. If it could manage to track the precious metal's direction rather than the S&P 500, investors could see an entirely different bitcoin market in 2025.
In summary, the world is watching Bitcoin closely as it navigates through choppy waters influenced by both economic factors and institutional interests. The potential for Bitcoin to become a recession hedge, supported by voices like Robbie Mitchnick’s, may redefine how both individual and institutional investors perceive this cryptocurrency in uncertain financial climates.
