Bitcoin has long been regarded as a volatile asset, yet its growing institutional adoption is beginning to suggest that its price could soon see a significant upward surge. According to BlackRock’s head of digital assets, Robbie Mitchnick, Bitcoin’s price is on the verge of matching its increasing institutional backing. Speaking to Yahoo Finance on March 19, 2025, Mitchnick outlined that Bitcoin remains 15% higher than its early November price, despite recent market downturns. He noted that the cryptocurrency’s price action has not yet reflected the substantial institutional interest it has garnered, suggesting that an imminent growth phase is on the horizon.

The Role of Institutional Adoption in Bitcoin’s Price Surge

Bitcoin’s recent price movement has puzzled many observers, as it continues to trade below the expectations set by some bullish propellants, such as a series of moves from the United States. One of the most significant of these was President Donald Trump’s signing of an executive order in 2025 to create a US Strategic Bitcoin Reserve. While many anticipated that this move would trigger a dramatic rise in Bitcoin’s price, the cryptocurrency has retraced significantly since. According to Mitchnick, this delay in Bitcoin’s price response can be attributed to prematurely high expectations about the immediate impact of such catalysts.

Despite this, Bitcoin’s institutional adoption continues to grow. BlackRock has been at the forefront of attracting institutional investors to Bitcoin, specifically through its iShares Bitcoin Trust (IBIT). Several large financial institutions, including Barclays, JPMorgan, and Avenir Group, have publicly disclosed significant holdings in IBIT, which tracks Bitcoin’s price. Mitchnick emphasized that the recent downturn has not slowed BlackRock’s efforts to engage institutional investors in Bitcoin, reinforcing the idea that Bitcoin’s long-term bullish outlook remains intact.

The Impact of ETF Outflows and Hedge Funds

Mitchnick also discussed the recent outflows from Bitcoin exchange-traded funds (ETFs). He explained that these outflows were primarily due to hedge funds unwinding their spot-futures arbitrage trades. Despite the outflows, Mitchnick pointed out that long-term investors continue to hold on to their Bitcoin, which signals confidence in its future potential. This indicates that while there may be short-term fluctuations, Bitcoin’s institutional demand is still very much in place, supporting the asset’s price in the long run.

Why Bitcoin’s Struggles May Be Temporary

When asked why Bitcoin has struggled to maintain bullish momentum compared to other assets like gold—especially as gold has hit new all-time highs amid global economic uncertainties—Mitchnick pointed to Bitcoin’s “long-term fundamentals.” He explained that Bitcoin’s characteristics suggest it should typically act as a store of value during times of economic stress, similar to gold. However, he noted that the recent correlation between Bitcoin and risk factors in the market was “self-inflicted” by certain industry narratives that have inaccurately positioned Bitcoin as a “risk-on” asset.

According to Mitchnick, Bitcoin’s true intrinsic value will eventually align with its growing reputation as “digital gold.” While its performance may have been subdued in recent months, the overall outlook remains strong as institutional support and adoption continue to rise.

Recession Could Be a Game-Changer for Bitcoin

Looking ahead, Mitchnick believes that a potential recession could act as a major catalyst for Bitcoin’s adoption. He highlighted how economic conditions associated with a recession—such as increased fiscal spending, lower interest rates, monetary stimulus, and concerns over social unrest—are particularly favorable for Bitcoin. In a market downturn, Bitcoin’s decentralized nature and its potential as an alternative to traditional financial systems could become even more appealing to both institutional and retail investors.

As more financial institutions recognize Bitcoin’s potential as a store of value, the cryptocurrency could see significant demand. With BlackRock’s efforts to position Bitcoin as a key player in institutional portfolios, the future of the asset looks increasingly optimistic.

Conclusion

While Bitcoin may have experienced some volatility recently, the growing institutional adoption, combined with developments such as the US Strategic Bitcoin Reserve and BlackRock’s investment products, signals that the cryptocurrency is on the brink of a major surge. As Bitcoin continues to evolve and gain recognition as “digital gold,” its price could soon rise significantly, potentially leading to a new era of growth for the pioneering cryptocurrency.