Larry Fink, CEO of BlackRock Inc. (NYSE:BLK), stated on Wednesday that Bitcoin (CRYPTO: BTC) is more stable at current levels, with excessive leverage largely washed out of the system.
Is Fink Betting On Bitcoin’s Bull Run?
During an interview with CNBC, Fink said that he was always “worried” about “too much” leverage in Bitcoin and the broader cryptocurrency market.
“That’s why we had the washout. And I think there’s more stability at these levels here,” he stated.
Overall, Fink observed that capital markets currently have comparatively less implicit leverage, adding, “I’m very bullish on the markets over the next 12 months.”
Overheated Market Cools Down
Bitcoin crashed in early October last year after surging to its all-time high, wiping out tens of billions in value and triggering the largest liquidation event in crypto history
Some observers deemed the sell-off a necessary “reset” that flushed out excess leverage and also described it as a “base-building phase” before the next leg up.
Data from Coinglass showed how massive deleveraging has taken place since the event
From Skepticism To Advocacy
Fink’s views on Bitcoin have evolved with time. Back in 2017, he famously said, “Bitcoin just shows you how much demand for money laundering there is in the world.” [source]
His skepticism has evaporated over time. Just last year, he praised Bitcoin as a remedy for economic and political uncertainties, projecting a price of up to $700,000 if the world catches on to this idea.
Notably, BlackRock recommends a 1% to 2% allocation to Bitcoin in traditional multi-asset portfolios.
Meanwhile, BlackRock’s second-quarter results topped Wall Street expectations, driven by record inflows, revenue and earnings. Assets under management increased 22% year-over-year to a record $15.34 trillion.
Price Action: At the time of writing, BTC was exchanging hands at $64,590.98, down 0.21% in the last 24 hours, according to data from Benzinga Pro.
BlackRock shares fell 0.08% in after-hours trading after closing 6.63% higher at $1093.40 during Wednesday’s regular trading session.
According to Benzinga’s Edge Stock Rankings, BLK maintains a stronger price trend in the short and medium terms, but has struggled over the longer term.
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