BlackRock CEO Larry Fink stated that his concerns about excessive leverage in the Bitcoin market have significantly diminished. In an interview with CNBC, he said that market stability has improved in the current price range after speculative positions were cleared out.
Fink said volatility has converged after leverage clearing.
Fink said he had previously been concerned about high leverage in Bitcoin and the broader crypto market. But in his view, this has changed; with earlier, riskier positions being squeezed out of the market, prices are now more stable than before.
This statement did not provide a specific price target, but it reflects that large asset management institutions are shifting their focus from simple volatility to leverage levels and capital quality in their observation of the Bitcoin market structure.
The interview focused more on artificial intelligence.
The interview largely focused on artificial intelligence rather than crypto assets. Fink stated that demand for computing infrastructure still exceeds supply, and the US may fall behind in the competition if it fails to continue its related development.
He also expressed optimism about the financial markets' performance over the next 12 months, partly because technological advancements are improving corporate profit margins. According to him, artificial intelligence and automation tools are helping more companies improve operational efficiency.
- Fink said the market outlook for the next 12 months is optimistic.
- He believes that technological revolution will drive more companies to improve their profit margins.
- BlackRock's profit margin improved by 260 basis points over the past 12 months.
From questioning Bitcoin to supporting spot ETFs
Fink's attitude toward Bitcoin has changed significantly in recent years. In 2017, he publicly criticized Bitcoin and expressed skepticism about crypto assets.
In 2023, BlackRock filed an application for a spot Bitcoin ETF, subsequently launching one of the industry's largest related products. Since then, Fink has repeatedly described Bitcoin as an international asset, viewing it as a tool for hedging against currency devaluation, as well as as "digital gold" and a diversification tool in asset allocation.
His latest statement shows that, following the launch of spot ETFs and their continued attraction of institutional funds, public discussions among traditional financial executives about Bitcoin have increasingly shifted towards market maturity and allocation attributes.
