Larry Fink predicts that Bitcoin could reach a value of $700,000 if institutional investors allocate between two and five percent of their portfolios to the cryptocurrency.
Bitcoin has experienced a sharp increase in value in recent months. In 2024, its value rose by 121 percent, reaching a peak of $108,135 in December. On Monday, after Donald Trump was inaugurated as president of the United States, the cryptocurrency reached a record high of $109,225.
In an interview with Bloomberg in Davos on Wednesday, Fink said he is “a big believer” of the world’s largest cryptocurrency as an instrument, highlighting its potential.
– If you’re frightened of the debasement of your currency, or you’re frightened of the economic or political stability of your country, you can have an internationally based instrument called Bitcoin that will overcome those local fears, Fink said.
Managing thousands of billions
Fink has previously shown little interest in cryptocurrency, telling Bloomberg in 2018, for example, that BlackRock’s clients had zero interest in crypto. Last year, however, BlackRock launched Bitcoin Trust and Ethereum Trust, exchange-traded funds that invest directly in the two cryptocurrencies. Now Fink believes bitcoin could reach a value of $700,000.
– I was with a sovereign-wealth fund during this week, and there was a conversation, should we have a 2% allocation? Should we have a 5% allocation? If everybody adopted that conversation, it would be $500,000, $600,000, $700,000 for bitcoin.
With assets of approximately $11.5 trillion, BlackRock wields significant influence over the market. Fink’s comments can thus be seen as a signal to both institutional and private investors about the future potential of cryptocurrency.
Since its creation in 2009, Bitcoin has enabled people to send and receive money online without having to rely on banks or governments. The price is mainly influenced by market supply and demand, competing cryptocurrencies, availability and investor attitudes.