The US company BlackRock is not only the world’s largest asset manager, but also a major player in the crypto business. The decisive factor was the launch of a Bitcoin spot ETF, which has been shaking up the market since the beginning of last year.
Bitcoin ETF Pioneer
With this, BlackRock made a massive commitment to Bitcoin and, with its product, ensured greater acceptance and higher prices. Given BlackRock’s position, every statement by CEO Larry Fink is considered important.
He sees Bitcoin as suffering from the current economic chaos triggered by the new US administration. He also warned in an interview of a renewed rise in inflation.
Nervousness dominates the mood
Bitcoin itself has been reacting extremely nervously for weeks to the turbulence caused by the US’s aggressive trade policy. The tariffs are weighing on economic growth and promoting inflationary tendencies. These developments are not good for volatile assets like Bitcoin, because in these times, investors are turning to less risky investments.
The price of Bitcoin fell from its all-time high of almost $109,000 to around $77,000. Although a slight recovery has now begun, whether this can be considered stable is more than questionable.
High interest rates, low prices
After all, the Fed is still not considering lowering US interest rates because it fears a renewed rise in inflation. Larry Fink of BlackRock recently openly addressed these dangers. While he acknowledged Trump’s nationalist approach, he also warned against more inflation.
He’s in good company, as major US investment banks like Goldman Sachs also see the risk of a recession increasing. This uncertainty is reflected in the crypto markets just as it is in the stock markets.
However, the medium-term outlook for Bitcoin remains positive. The post-halving year, the strategic reserve, and a realignment of the stock market regulator should create the climate in which new highs can be reached. This is also known by Bitcoin Bull, a new token that promises its investors Bitcoin shares upon reaching price targets. If the price driver, Bitcoin, picks up again, the crypto market as a whole will also benefit.
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