BlackRock Director: AI Stole Bitcoin's Oxygen, U.S. Fiscal Sparks Could Give It Back 🚬

BlackRock Managing Director Robert Mitchnick said U.S. fiscal conditions are the most important factor that could drive the next Bitcoin rally, pointing to potential macroeconomic shifts over the coming year. Speaking in an interview, Mitchnick attributed $BTC's recent sluggish performance partly to capital rotating into artificial intelligence ventures, a theme he said has dominated investor attention and pulled liquidity away from other asset classes.

"It's been a tough stretch for Bitcoin since last October," Mitchnick said, noting that the weakness has extended beyond digital assets. He said gold and other precious metals have also faced pressure during the same period, describing the pattern as a broader rotation rather than a crypto-specific issue. Mitchnick characterized AI as "sucking a lot of the oxygen out of the room," a dynamic he believes has reduced demand for assets outside that narrative.

The BlackRock executive pointed to recent capital flows as evidence of the shift, citing the latest SpaceX IPO as an example of billions of dollars moving into private ventures rather than public markets. He said investor enthusiasm around AI-related opportunities has been the primary headwind for $BTC and other risk assets in recent months.

Despite the slowdown, Mitchnick indicated that macroeconomic factors could reassert themselves and potentially benefit Bitcoin in the near term. He suggested that developments in U.S. fiscal policy may become a more prominent driver of market direction as the AI-driven liquidity cycle evolves, positioning fiscal conditions as the key variable to watch for the next phase of $BTC price action.