BlackRock CEO Larry Fink believes that Bitcoin (BTC) could soar to $700,000 if global economic and political instability prompts widespread adoption of the flagship crypto.
Fink made the prediction while speaking on a panel at the World Economic Forum on Jan. 22. He outlined a scenario in which Bitcoin becomes a refuge for wealth preservation amid turmoil.
He also said that he is a “big believer” in Bitcoin because it is an “internationally based instrument” that can protect people from currency debasement and economic instability.
According to Fink:
“If people across countries experiencing political and economic turmoil turn to Bitcoin to protect their purchasing power, we could see an unprecedented surge.”
He said his projections are based on the fact that BlackRock’s clients, including major investment funds and asset managers, are increasingly inquiring about Bitcoin allocations.
Fink revealed:
“I was with a sovereign wealth fund during this week and that’s what we talked about, that was the conversation: should we have a 2% allocation, should we have a 5% allocation?”
Fink added that his remarks are not intended to promote investments in Bitcoin but shed light on the current perspective of institutional clients. He noted that widespread adoption of such strategies could drive Bitcoin’s value to $500,000, $600,000, or even $700,000.
BlackRock betting on Bitcoin
BlackRock recently published a report stating that Bitcoin adoption is outpacing other tech innovations, such as the internet and mobile phones.
The report highlighted rising inflation, geopolitical tensions, and concerns over traditional banking systems as the main drivers of this rapid growth.
Moreover, BlackRock increased by 117% the number of IBIT shares acquired through its Global Allocation Fund in the last quarter, totaling 430,770 shares.
Notably, BlackRock is the issuer of the world’s largest spot Bitcoin exchange-traded fund (ETF), the IBIT. Farside Investors data reveals that IBIT has over $39 billion of net positive flows as of Jan. 21.
Additionally, it became the top ETF of the decade, surpassing all its rivals’ inflows.
Multiple millions
Brian Armstrong, CEO of Coinbase, recently stated that he had conversations with finance ministers of different countries who were considering creating strategic Bitcoin reserves if the US moves in this direction.
According to Armstrong, the sovereign interest in BTC is one of the drivers that could propel its price to the “multiple millions price range.”
It all depends on Bitcoin becoming the new gold standard, appealing to investors in multiple countries and boosting adoption.
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