BlackRock’s Bold Prediction: Will Bitcoin Hit $87K as the Ultimate 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.

Bitcoin’s Use as a Recession Hedge

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.

BlackRock’s Bitcoin Strategy along with institutional investment

The largest asset manager in the globe, BlackRock, has been aggressively looking for chances 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.

Bitcoin Price Prediction for Coming Sessions

The chart shows BTC trading at $85,583.90, 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.

Chart 1: Analysed by vallijat007, published on TradingView, March 20, 2025

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. Bitcoin’s price action is unclear given the recent instability; therefore, risk management is critical over the short run.

Bitcoin’s Growing Role in Institutional Investment

Particularly among institutional investors, Bitcoin’s changing use as a recession hedge is starting to get 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.