Bitcoin
Bitcoin
Subscribe now to Forbes Crypto Asset and Blockchain Advisor and “Discover the blockchain blockbusters poised for 1,000%+ gains” following the Bitcoin halving earthquake!
Bitcoin price has surged to over $62,000 per bitcoin as traders now look ahead to a “shock and awe” earthquake in China after the Fed surprised traders with a 50 basis point cut, triggering what is expected to be a new round of liquidity that could put the bitcoin and cryptocurrency market on the cusp of a major move.
As fears grow that the US dollar is “on the brink of a complete collapse”, the world’s largest asset manager BlackRock has warned of “growing concerns” around the spiralling $35 trillion US debt that is likely to boost “institutional interest in bitcoin”.
Register now for free CryptoCodex—A daily five-minute newsletter for traders, investors, and the crypto-curious that will keep you up to date and ahead of the Bitcoin and cryptocurrency market bull run.
Federal Reserve Chairman Jerome Powell announced the first post-pandemic interest rate this week. … (+)
“Growing concerns in the United States and abroad about the state of U.S. federal deficits and debt have increased the appeal of potential alternative reserve assets as a potential hedge against potential future events affecting the U.S. dollar,” BlackRock’s chief investment officer of exchange-traded funds (ETFs), its head of cryptocurrencies and its head of global fixed income macro wrote in a paper outlining the case for investing in bitcoin.
“That’s why some have called bitcoin the Second Amendment of money,” Eric Balchunas, ETF analyst at Bloomberg Intelligence, told X, adding that the $35 trillion U.S. debt, which is growing at a rate of $1 trillion every 100 days, has “no end in sight.”
“This dynamic also appears to be developing in other countries where debt accumulation has been significant,” the authors of the BlackRock study add. “In our experience with our clients, this explains a substantial part of the growing institutional interest in bitcoin.”
BlackRock, which manages about $10 trillion in assets, has described bitcoin as a “unique diversifier” to protect against economic and political risks.
“While bitcoin has shown examples of short-term co-movements with stocks and other ‘risk assets’, over the longer term its fundamental drivers are radically different, and in many cases inverse, to most traditional investment assets,” the paper concludes.
In July, BlackRock CEO Larry Fink said he was “wrong” about bitcoin when he previously dismissed it as “an indicator of money laundering,” admitting that bitcoin was “digital gold” and a “legitimate” financial instrument.
BlackRock’s successful campaign to launch a full-fledged U.S. cash Bitcoin exchange-traded fund (ETF) last year has been a major driver of Bitcoin’s price in 2024, as Wall Street has jumped into the Bitcoin market.
Register now for CryptoCodex—A free daily newsletter for the crypto-curious
Bitcoin’s price has surged this year, helped by the Federal Reserve’s dovish turn and BlackRock’s policy … (+)
In May, BlackRock’s iShares Bitcoin Trust (IBIT) surpassed Grayscale Bitcoin Trust (GBTC) as the world’s largest bitcoin exchange-traded investment fund, with inflows to IBIT recently surpassing $21 billion.
The rise in bitcoin’s price following the Fed’s historic 0.5% interest rate cut is expected by many bitcoin and cryptocurrency observers to signal the start of a new bitcoin bull run.
“While there are other macroeconomic factors currently impacting the outlook for bitcoin and other risk assets, including geopolitical tensions and electoral uncertainty, these markets should benefit from the formalization of the Fed’s dovish turn,” Samir Kerbage, chief investment officer at bitcoin and cryptocurrency investment firm Hashdex, said in emailed comments.
“Our long-term investment thesis for bitcoin remains intact and regardless of the near-term direction of monetary policy, bitcoin remains well positioned for growth as institutional adoption continues to gain momentum.”
