Larry Fink, Chairman and CEO of BlackRock, mentioned that the valuation of Bitcoin might soar to $700,000 during a dialogue on artificial intelligence and cryptocurrency with Bloomberg at the World Economic Forum taking place in Davos.
Fink was present with Peng Xiao, the CEO of the UAE-based AI firm G42, when the topic of AI shifted toward crypto. Xiao expressed his belief that cryptocurrency represents the currency of AI, while Fink described it as a safeguard against inflation and a response to global uncertainties.
“As I delved into the study of crypto, it became evident to me that it is a currency born from fear,” remarked Fink. “And that’s alright. If you’re anxious about the erosion of your currency or the economic or political security of your nation, Bitcoin serves as an international instrument that can alleviate those local anxieties.”
He conveyed a comparable perspective last July, proposing that Bitcoin was an asset for individuals “concerned about global events.”
Nevertheless, it’s a venture that numerous are contemplating, including the participants of a sovereign wealth fund that Fink engaged with during his visit to Switzerland earlier this week. Fink noted that they were in discussions about allocating either 2% or 5% to Bitcoin.
“If that discussion gained widespread acceptance,” he stated, “Bitcoin could reach $500,000, $600,000, or $700,000.”
However, Fink humorously informed the audience that his comments were not meant as an endorsement of Bitcoin.
Fink and BlackRock have become closely associated with digital assets such as Bitcoin and Ethereum due to their spot ETF offerings for both, experiencing inflows worth billions over the preceding year. BlackRock’s iShares Bitcoin Trust ETF, or IBIT, grew substantial enough to surpass its gold ETF regarding assets managed.
Currently, Bitcoin has declined 2.5% in the past 24 hours, trading at $104,000, having reached a new peak price of $108,786 on Monday.
Edited by Andrew Hayward
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