By Michael Scott
BlackRock chief executive Larry Fink offered a bold outlook on accelerated Bitcoin adoption to push pioneer asset price to the $700,000 mark.
The BlackRock chair disclosed the bullish target at the World Economic Forum in Davos. The veteran executive of the asset management giant behind spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), informed Bloomberg that crypto and artificial intelligence (AI) will have a golden era.
Fink featured in the conversation alongside Peng Xiao, the chief executive of the UAE-headquartered AI firm G42. The G42 head illustrated that crypto is the currency of choice for AI. The asset management expert considers crypto a shield against inflation and pessimism, which are part of the ongoing events in the world.
Fink reflected on his journey to understand crypto, admitting that he considered such a currency of fear. The executive did not disregard such a profile, indicating that the fear of currency debasement and economic instability prompts one to embrace the international-based instrument. Bitcoin is the solution for those frightened by local fears emerging from potential instability to political and economic well-being.
Wealth Fund Operators to Fuel Surge
Fink echoed the sentiment he conveyed in July 2024, indicating that Bitcoin is the investment that suits those frightened of the world. Bitcoin adoption is an investment now considered inevitable by sovereign wealth fund operators. The executive admitted meeting such parties in Switzerland this week, with the majority debating on having a 2% – 5% allocation to BTC.
Fink considers if all parties were to have such a conversation, Bitcoin could surge to $500K and potentially $700K milestone. He expressed a disclaimer to the audience that his pronouncement does not translate to a Bitcoin promotion.
Fink’s optimistic view emerges from the deep links that BlackRock has established in crypto assets. The asset management firm issued spot exchange-traded funds (ETFs) tracking Bitcoin and Ethereum prices. The products have realized billions in inflows in 2024, with iBIT overtaking gold ETF in the size of assets under management.
Trump Factor in Bold BTC Outlook
The bullish outlook for Bitcoin by Fink emerged as it registered a gigantic leap above the $100K milestone following Donald Trump’s re-election. Despite a temporary pullback to below $95,000, Bitcoin rebounded on January 20 to set its new peak at $108,786 per CoinGecko data.
The surge to regain the post-election gains coincided with Donald Trump’s inauguration to register $99,717.61 – $108,228 seven-day price range for Bitcoin. The outcome is unsurprising given Trump’s promise to establish a Bitcoin stockpile while addressing the Nashville Conference in late July 2024.
President Trump honored his campaign promise to the crypto industry by signing the executive order on Thursday, January 23. The orders seek to facilitate crypto advancement in the country and develop the national digital asset stockpile.
Venture capitalist David Sacks witnessed the event held at the Oval Office as the administration’s crypto and AI czar. The order recognizes the crypto industry’s crucial role in innovation and economic development alongside guaranteeing the US international leadership.
Full-Throat BTC Endorsement?
The statement by Fink mirrors the full-throated endorsement of Bitcoin among major believers in the pioneer cryptocurrency. Coinbase chief Brian Armstrong echoed the Bitcoin evangelists’ stance, indicating BTC could attain multiple millions in value.
Armstrong endorsed the million-dollar prophecy, citing the upward momentum witnessed in the run to Trump’s inauguration. He informed CNBC that a new dawn for crypto is imminent, driven by institutional investors’ accelerated interest in crypto.
Armstrong singled out Trump’s promise to build the strategic Bitcoin reserve, which will create the fear of missing out (FOMO) and prompt the adoption of the idea in other countries.
The head of US’s largest crypto exchange indicated that the G20 members would follow suit if the US implemented the strategic reserve path. He considers Bitcoin set to become the new gold standard, though he profiles crypto to play a much bigger role.
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