BlackRock CEO Larry Fink recently made an appearance at The New York Times’ DealBook Summit alongside CoinBase CEO Brian Armstrong. During the event, Fink explained how he went from being skeptical about cryptocurrencies to having the biggest spot Bitcoin (BTC) ETF in the world. However, despite his bullish reversal on crypto, the BlackRock CEO stated that he believes Bitcoin (BYC) is “an asset of fear,” citing its price volatility. Fink stated, “If you bought [Bitcoin] for a trade, it’s a very volatile asset. You’re going to have to be really good at market timing, which most people aren’t.”
Is Bitcoin Really An Asset Of Fear, As Stated By The BlackRock CEO?
Bitcoin (BTC) and the larger crypto market have faced massive price swings throughout their history. The volatility around cryptocurrencies is one of its most notorious factors. Hence, Fink’s statement about it being an asset of fear is sound.
However, despite the ongoing market predicament, there is a high chance that Bitcoin (BTC) will rebound over the coming weeks. Chances of another interest rate cut later this month have significantly increased. Markets may begin to price in another 25 basis point interest rate reduction. A rate cut could lead to a market-wide rally, and Bitcoin (BTC) could reclaim the $100,000 mark under such circumstances.
Grayscale also released a report that claims that Bitcoin (BTC) may hit a new all-time high in 2026. The financial institution believes that BTC follows a 5-year cycle instead of a 4-year cycle. A 5-year cycle would mean that the original crypto will hit an all-time high in 2026 before facing a major dip.
Also Read: US Investors Go Risk-On: Nearly $1B Pours Into Crypto ETFs in a Week
However, as stated by the BlackRock CEO, Bitcoin (BTC) is a volatile asset. Macroeconomic conditions, investor sentiment, geopolitical tensions, etc. could bring unforeseen challenges. BTC’s price could suffer if such developments arise.
