BlackRock CEO Larry Fink believes Bitcoin (BTC) could soar to $700,000 if global economic and political instability prompts widespread adoption of the flagship crypto.
Fink made this prediction during a speech at the World Economic Forum on January 22. He outlined a scenario in which Bitcoin becomes a haven for wealth preservation amid turmoil.
He also said he is a “strong supporter” of Bitcoin because it is an “internationally based instrument” that can protect people from currency depreciation and economic instability.
According to Finck:
“If people in all countries experiencing political and economic turmoil turn to Bitcoin to protect their purchasing power, we could see an unprecedented surge.”
He said his forecasts are based on the fact that BlackRock’s clients, including large mutual funds and asset managers, are increasingly asking questions about Bitcoin allocations.
Fink revealed:
“I was at a sovereign wealth fund this week and we talked about that, that was the conversation: should we have a 2% allocation, should we have a 5% allocation?”
Fink added that his comments are not intended to promote investment in Bitcoin, but shed light on the current perspective of institutional clients. He noticed that widespread adoption of such strategies could boost Bitcoin’s value to $500,000, $600,000 or even $700,000.
BlackRock is betting on Bitcoin
BlackRock recently published a report which states that Bitcoin adoption is outpacing other technological innovations such as the internet and mobile phones.
The report highlighted rising inflation, geopolitical tensions and concerns about traditional banking systems as the main drivers of this rapid growth.
Plus BlackRock increased by 117% the number of IBIT shares acquired through the Global Allocation Fund in the last quarter, a total of 430,770 shares.
Notably, BlackRock is the issuer of the world’s largest Bitcoin Exchange Traded Fund (ETF), the IBIT. Farside Investors facts reveals that IBIT has over $39 billion in net positive flows as of January 21.
Moreover, it became the best ETF of the decade, which exceeds the intake of all rivals.
Several millions
Brian Armstrong, CEO of Coinbase, recently declared that he had conversations with finance ministers of several countries who were considering creating strategic Bitcoin reserves if the US moves this way.
According to Armstrong, the sovereign stake in BTC is one of the factors that could push its price into the “multi-million price range.”
It all depends on whether Bitcoin becomes the new gold standard, becomes attractive to investors in multiple countries and drives adoption.
