BlackRock’s Mitchnick Says U.S. Fiscal Risks Matter More to Bitcoin Than CLARITY Act

BlackRock digital-assets head Robbie Mitchnick said the U.S. government’s fiscal trajectory is a bigger driver of Bitcoin’s value over time than the proposed CLARITY Act, with rising federal borrowing and recurring budget shortfalls carrying greater significance for the cryptocurrency’s outlook.

Federal debt stood at roughly $40.05 trillion on Aug. 18. Mitchnick said mounting debt and persistent fiscal deficits have re-emerged as a major market risk, leading some investors to consider Bitcoin and gold as alternative stores of value.

His comments distinguish Bitcoin’s longer-term investment case from the potential effects of U.S. crypto legislation. 

Mitchnick said the CLARITY Act could have broader implications for other parts of the digital-asset market, including decentralized finance, or DeFi.

Source: Cryptopolitan