Yes bed bugs can hide and live in blankets so if you have a bed bug infestation you should run your blankets through the dryer on the high heat setting to help kill off any bed bugs that could be hiding and living in your blankets.
Blankets make a good place for the bed bugs to hide and live out of sight and makes it easier for the bed bugs to get to the person under the blankets to bite them.
After running the blankets through the dryer to kill off the bed bugs you should take the blankets outside and shake the blanket to remove some of the bed bugs.
You should also run the blankets through the washing machine after drying them and then dry them again in the dryer.
Bed bugs can also live and lay eggs in walls and crevices, box springs, cabinets, suitcases, carpets, books, baseboards, clothing and behind picture frames.