Concerns over the ballooning US debt and deficit are pushing investors toward Bitcoin and gold. That’s according to Robert Mitchnick, head of digital assets at BlackRock, who told CNBC, “The level of debt and deficit is a major concern for markets. But this environment actually benefits assets like Bitcoin and gold.”

US Debt and Deficit Driving Demand

Mitchnick tied the growing appetite for Bitcoin and gold to macro risks tied to America’s debt load and fiscal shortfall. He thinks these are the key factors propping up demand for assets that investors see as a store of value.

Investors Question Fiat’s Purchasing Power

According to Mitchnick, more and more market players are questioning the purchasing power of fiat currencies and looking for alternative ways to preserve their wealth. Against this backdrop, Bitcoin is increasingly seen as a diversification play alongside gold.

Bitcoin Rallies Despite CLARITY Act Uncertainty

Mitchnick added that the current macro backdrop may help explain Bitcoin’s rally, even as interest in the CLARITY Act fades. His comments highlight that the real driver remains the broader uncertainty around the US fiscal and debt outlook.