BlackRock’s CEO Larry Fink predicts Bitcoin price could hit $700,000 if sovereign wealth funds assign 2-5% of their portfolios to digital currency. During his World Economic Forum discussion in Davos Fink revealed talks with sovereign wealth fund managers about placing 2% to 5% of their money into Bitcoin. He thinks investments from these funds will greatly boost Bitcoin’s market value.
BlackRock CEO Larry Fink Predicts BTC Price To $700K With Sovereign Fund Support
BlackRock CEO Larry Fink recounted discussions he’d had with a sovereign wealth fund managers during a panel at World Economic Forum. The conversations surrounded 2% to 5% of their investments in Bitcoin and its potential impact. According to Fink, such moves could trigger Bitcoin price to $500,000, $600,000 or even $700,000.
Fink emphasized Bitcoin’s utility as a hedge against economic and political instability. He pointed out that Bitcoin offers an internationally recognized instrument for investors seeking alternatives to protect against local currency geopolitical uncertainties.
Larry Fink added,
“If you’re frightened about debasement or local political instability, you have an international instrument called Bitcoin to overcome those fears. 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.”
Larry Fink’s predictions align with Bitcoin’s ongoing bullish momentum, as the cryptocurrency eyes fresh all-time highs. As Bitcoin consolidates near $106K, a breakout above this resistance could pave the way for further gains.
Transition From Skepticism to Cryptocurrency Advocacy
The BlackRock CEO’s recent remarks reflect a shift in his stance on cryptocurrencies. In 2018, Fink dismissed the idea that BlackRock’s clients were interested in digital assets. However, in recent years, BlackRock has embraced cryptocurrency, launching iShares Bitcoin and Ethereum Trusts to provide institutional investors access to the digital asset market.
The iShares Bitcoin Trust lets investors participate in Bitcoin’s market value since its beginning in 2024. After its launch BlackRock’s iShares Bitcoin Trust (IBIT) exceeded all expectations by growing to $50 billion in assets in just 11 months of operation. IBIT broke several records including becoming the most rapidly expanding ETF ever.
This growth highlights strong investor interest, driven by IBIT’s dominance in daily trading volume, accounting for over 50% of U.S. Bitcoin ETF activity.
Bitcoin Price Trends and Volatility
At press time, Bitcoin was trading at $104,898, slightly below its recent high of $109,225. Despite Fink’s optimism, he cautioned that he was not promoting Bitcoin but merely discussing its potential. Cryptocurrencies are known for their volatility, with Bitcoin experiencing sharp pullbacks even during market uptrends.
Market analysts have noted BTC increasing dominance in the crypto market, a factor that often signals price movement. If sovereign wealth funds and other institutional players adopt Fink’s suggested allocation, Bitcoin value could surge.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: