BlackRock chief foresees USD700,000 Bitcoin

(MENAFN) Larry Fink, CEO of BlackRock, predicts that Bitcoin could soar to $700,000 if institutional investors allocate between 2% and 5% of their portfolios to the cryptocurrency. This forecast comes after Bitcoin experienced a 121% price increase in 2024, peaking at $109,225 in December and continuing to rise after the inauguration of President Donald Trump, who has plans to make the US the global "crypto capital."

Fink, who has become a proponent of Bitcoin, views it as a hedge against economic or political instability. He believes Bitcoin's growing adoption by institutional investors could drive its price to $500,000, $600,000, or even $700,000, though he clarified that he isn't actively promoting the asset.

BlackRock, the world’s largest asset management firm, launched Bitcoin and Ethereum Trust exchange-traded funds in 2024, marking its shift from initial skepticism about cryptocurrencies. Fink noted that sovereign wealth funds are already considering Bitcoin allocations, further indicating the momentum toward institutional involvement in digital assets.

Despite Bitcoin's growing use, concerns remain about its volatility and the regulatory challenges it faces globally. Some critics, like financial analyst Susie Violet Ward, argue that institutionalization could undermine Bitcoin’s original decentralized ethos.

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