Bitcoin and Crypto: How They Affect Investors’ Flight to Quality, Says BlackRock CEO
BlackRock chief executive Larry Fink believes that Bitcoin (BTC) and the rest of the crypto markets are now ready to serve as safe-haven assets amid worsening geopolitical conditions.
Bitcoin's Rally Shows Its Potential as a Store of Value in Times of Crisis
Bitcoin, the leading cryptocurrency, has shown its strength as a mature asset that can serve as a store of value in times of crisis. This is what Fink, the CEO of BlackRock, said in a new Fox Business interview.
Why Bitcoin is Attracting Investors
Fink explained that Bitcoin's rally earlier this week is an example of the pent-up interest in crypto. He said that he is hearing from clients around the world about the need for crypto.
He also said that some of this rally is way beyond the rumor. He attributed the rally on Monday to a flight to quality amid the issues around the Israeli war, global terrorism, and other uncertainties. He said that more people are running into a flight to quality, whether that is in treasuries, gold, or crypto - depending on how they think about it.
He added that he believes crypto will play that type of role as a flight to quality.
Bitcoin's Price Movement
On Monday, Bitcoin briefly surged above $30,000 after erroneous reports circulated that the U.S. Securities and Exchange Commission (SEC) approved BlackRock's bid for a spot-based BTC exchange-traded fund (ETF).
At the time of writing, Bitcoin is trading for $28,448, according to CoinMarketCap.
The Future of Technology and Innovation
Fink also shared his views on the broader picture of technology and innovation. He said that people's attention is being consumed by bad news stories around the globe that they are forgetting about the world-changing potential of artificial intelligence (AI) and technology.
He said that we are not spending enough time talking about some of the great things that are going on in the world today and that's when he thinks about technology and how it's going to shape and change our world. He said that AI and robotics are going to accelerate the movement towards nearshoring and onshoring.
He said that we're going to be able to use this new technology to create more jobs and more factories in the US.
Oct 18, 2023