Bitcoin and crypto prices have fallen sharply this year, wiping around $2 trillion from the combined market as traders brace for the “ultimate catalyst.”
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The bitcoin price crash to just over $60,000 per bitcoin has knocked confidence in crypto even though U.S. president Donald Trump just revealed a huge crypto surprise.
Now, as a tiny cryptocurrency could be about to rocket 50-fold, creating “generational wealth,” BlackRock’s chief executive Larry Fink has said he’s very bullish on the market over the next 12 months.
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BlackRock chief executive Larry Fink has said he remains bullish even after the 50% bitcoin price and crypto market crash.
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“I was always worried about the leverage in in bitcoin and crypto,” Fink told CNBC, explaining the bitcoin price implosion since it hit an all-time high of $126,000 in October last year.
“There was too much leverage players in it. That’s why we had the wash out and I think there’s more stability at these levels here … I’m very bullish on the markets over the next 12 months.”
Fink was speaking after BlackRock posted revenues that rose 31% in the second quarter from a year earlier to $7.1 billion, while adjusted operating profit margin, a key metric watched by investors and analysts across Wall Street, rose to almost 46% to its highest level in almost five years.
The world’s largest asset manager is now looking after a record $15.3 trillion on behalf of investors, thanks to an influx of cash that beat Wall Street forecasts and was largely driven largely by its iShares exchange-traded funds (ETFs) business that includes it market-leading bitcoin IBIT ETF.
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The bitcoin price has dropped sharply over the last few months, though many are still making bullish bitcoin price predictions.
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Fink has repeatedly called the crypto-powered tokenization of financial markets a coming “revolution,” with BlackRock’s bitcoin fund described as the company’s first step in the digitalization of Wall Street and global markets.
“This is going to be the next revolution in finance and it happens because of the strength of the United States capital markets having the ability to finance these new technologies so the United States and other places in the world can be leaders in the new technologies,” Fink said, referring to the artificial intelligence data center and computer chip build out.
Last month, BlackRock’s global fixed income chief investment officer, Rick Rieder, said he was also bullish on the market outlook, pointing to up to $9 trillion of funds that are about to be redeployed.
“There is so much cash that’s sitting on the sidelines,” Rieder, who once said bitcoin is close to replacing gold as a global safe haven, told Bloomberg, pointing to SpaceX’s record-breaking initial public offering (IPO) creating market momentum that has accelerated on hopes that the U.S.-Iran peace deal will remove a major geopolitical risk factor.
“Once that has happened, all of a sudden it unlocks this cash, particularly when you get a good piece of news and people say, ‘gosh, I can get into the pool.’ And it’s pretty explosive when you see it happen.”