Fink predicts $700k for Bitcoin as Trump’s silence impacts crypto markets

Bitcoin prices seemingly remain constrained, lacking any significant policy updates from Donald Trump and failing to respond to optimistic predictions made by Larry Fink about a potential price surge. Despite reaching a peak of over US$108,500 before Trump’s inauguration, Bitcoin has since dropped by 1.4%, resting at US$102,188 on Thursday. Fink, the CEO of Blackrock Inc, suggested that Bitcoin could rise to as high as US$700,000 during his interview at the World Economic Forum in Davos.
Fink’s conversation with Bloomberg revealed discussions with sovereign wealth funds regarding potential investments in Bitcoin as a hedge against the weakening dollar due to persistent inflation concerns. He stated that if more people embraced the idea of using Bitcoin as a safe haven asset, its price could soar to US$500,000, US$600,000, or even US$700,000 per Bitcoin. Fink and Blackrock had spearheaded the push for spot Bitcoin exchange-traded funds to be approved in the US in 2023, leading to a surge of ETF launches the following year.
The recent surge in Bitcoin’s popularity can be attributed to inflation fears brought on by increased government spending to revitalize the economy after the pandemic-induced lockdowns. Fink’s comments, however, failed to provide immediate support to Bitcoin prices on Thursday as traders anxiously awaited any potential announcements from Trump regarding his promised actions to support the crypto industry.
While Fink’s optimistic forecast for Bitcoin’s future might not have had an immediate impact on its price, the potential for soaring prices through increased adoption as a global safe haven asset remains a tantalizing prospect. Despite the current lull in Bitcoin prices, the groundwork laid by Fink and Blackrock for the approval of Bitcoin ETFs in the US sets the stage for further innovation and growth in the cryptocurrency market. As investors continue to monitor developments in the crypto world, the anticipation for potential policy shifts and industry support remains high.