Larry Fink: Institutional Bitcoin Demand Could Boost Prices to $700K
The CEO of Blackrock, the world’s largest asset manager, Larry Fink, shared bold predictions about bitcoin’s future value during a panel at the World Economic Forum in Davos this week. Once skeptical of cryptocurrencies, Fink emphasized bitcoin’s potential role as a global financial instrument and its appeal to institutional investors. He highlighted a recent discussion with a sovereign wealth fund, stating:
There was a conversation, should we have a 2% allocation? Should we have a 5% allocation? If everybody adopted that conversation, it would be $500,000, $600,000, $700,000 for bitcoin.
The Blackrock chief executive framed bitcoin as a tool to mitigate financial instability, particularly in regions facing economic or political uncertainty. He explained: “If you’re afraid of the debasement of your currency, or you’re frightened of the economic or political stability of your country, you can have an internationally based instrument called bitcoin that will overcome those local fears.”
While expressing confidence in its utility, Fink clarified that he is not promoting the cryptocurrency and acknowledged its significant volatility. He noted that price corrections of 20% to 30% are common even in bullish markets, underscoring the risks of digital assets.
The Blackrock CEO has significantly shifted his stance on bitcoin over the years. Initially skeptical, labeling BTC as an “index of money laundering” in 2017, he has evolved to become a prominent advocate for the cryptocurrency. In a recent interview, he described himself as a “major believer” in bitcoin, emphasizing its legitimacy as a financial instrument and its potential as a hedge against currency debasement and political instability. In October last year, Fink highlighted bitcoin’s growing legitimacy as an investment, calling it an alternative to commodities like gold. “We believe bitcoin is an asset class in itself,” he said.
Fink’s comments coincide with Blackrock’s push for its bitcoin exchange-traded fund (ETF), which has been widely discussed in financial markets. The crypto ETF offers institutional and retail investors a regulated way to gain exposure to bitcoin, driving greater demand and liquidity. In addition, a recent Blackrock market insights report highlights that the adoption of crypto assets, particularly bitcoin, has surpassed the growth rate of the internet and mobile phones.
Source:news.bitcoin.com
