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BlackRock CEO Says ‘I Was Wrong About Bitcoin’, Here’s Why

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Larry Fink, the founder and Chief Executive Officer (CEO) of BlackRock, the world’s largest asset manager, has admitted to being wrong about his previous views on Bitcoin. While reversing his former stance on the pioneer cryptocurrency, the renowned CEO lauded praises for the cryptocurrency, underscoring its incredible growth over the years. 

BlackRock CEO Confesses Misjudgment On Bitcoin

In a recent interview with CNBC TV, Fink publicly disclosed that he was once a “proud skeptic” of Bitcoin, doubting the cryptocurrency’s value and long-term role in the financial sector. Like many in the financial sector who underestimate BTC’s potential, Fink had also misjudged the cryptocurrency.

He revealed that his perspectives on BTC have evolved significantly over the past five years. By dedicating time to studying cryptocurrency, Fink emphasized that he has come to appreciate and understand its importance and value

Acknowledging that he was wrong about Bitcoin in his past years, Fink has disclosed that he is now a firm believer in the cryptocurrency. He further declared that BTC is a legitimate digital currency and financial instrument that allows investors to have uncorrelated financial returns. 

Moving on, the BlackRock CEO noted Bitcoin’s crucial role in the economy of various global countries. He stated that Bitcoin is a financial instrument that has helped when countries have debased their fiat currencies by excess deficits. He also disclosed that in countries with poor economic and financial systems, BTC serves as an important payment method and investment asset outside the control of the country’s governance. 

Fink also called Bitcoin “digital gold,” emphasizing that the cryptocurrency is a vehicle in which investors can express their financial acumen. Moreover, Fink believes that there is a great industrial use for BTC, underscoring its technological and innovative potential in diverse sectors. 

For many crypto enthusiasts, Fink’s admission of once being a BTC skeptic may come as a surprise, considering his current role as the CEO of BlackRock, the top provider of Spot Bitcoin ETFs. Fink’s former stance on BTC has transformed in such a profound way that he now manages a company that is presently the world’s largest Bitcoin fund with over $21 billion in Assets Under Management (AUM)

BTC Critics Still Not Convinced

While Fink’s past skepticism of Bitcoin has undergone a dramatic shift, other critics of the cryptocurrency still remain firm in their doubts. Peter Schiff, a renowned BTC hater, recently shared another bearish price forecast for Bitcoin on X (formerly Twitter). 

Sharing a price chart, Schiff forecasted that Bitcoin is headed toward a downtrend at $42,000, with possibilities of even dropping lower to long-term support between $15,000 to $20,00. The Chief economist has constantly issued bearish predictions for the cryptocurrency. This skepticism likely stems from his personal aversion to the asset. 

Bitcoin BlackRock
Source: X

Furthermore, Schiff has regularly compared BTC to gold, announcing on September 16 that “Bitcoin is not digital gold, and it’s not even digital silver.” He has also criticized the cryptocurrency, stating that it lacked intrinsic value and is destined to fail.  

Bitcoin price chart from Tradingview.com
BTC price loses $60,000 support | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com



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Trump and Lummis Unite on $76 Billion National Bitcoin Reserve

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Senator Cynthia Lummis is making a bold new proposal to establish a Bitcoin reserve in the US. This follows President-elect Donald Trump’s recent declarations in the run-up to the US elections.

Her bill, the BITCOIN Act of 2024, aims to have the US Treasury acquire 1 million Bitcoin (BTC) over five years, a massive move that would position the US as a leader in financial innovation.

Senator Cynthia Lummis Advocates Bitcoin Reserve

The Wyoming senator wants the plan spread across five years, with purchases of 200,000 BTC tokens every year to develop America’s Bitcoin reserve. At current rates, that translates to an investment of about $76 billion.

“We are going to build a strategic Bitcoin reserve,” Lummis shared on X (formerly Twitter).

Notably, Lummis’s side of the political divide now holds the majority in both the Senate and House committees. According to Stand With Crypto, 261 pro-crypto candidates have been elected to the House of Representatives against 116 anti-crypto candidates. On the other hand, there are 17 pro-crypto candidates in the Senate and 12 anti-crypto lawmakers.

Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know

BTC Price Performance
BTC Price Performance. Source: BeInCrypto

With this, the chances of Senator Lummis’ Bitcoin Bill passing through Congress are far better. This is as opposed to the Biden administration, where efforts toward bipartisan bills were greatly stifled due to a divided Congress. 

This political alignment, along with Bitcoin’s recent surge to a new all-time high, adds momentum to Lummis’ initiative. Industry leaders, including Michael Saylor of MicroStrategy and Samson Mow, have shown support, stressing Bitcoin’s potential as a national asset.

Mow highlighted Bitcoin’s value at sub-$100,000, pointing out its potential strategic importance if prices soar above $500,000 in coming years.

“Good luck Senator Lummis. I suggest acting quickly. The difference between acquiring Bitcoin below $0.1 million vs. $0.5 million will have massive geopolitical ramifications,” Mow wrote.

Framework for Secure BTC Management

The BITCOIN Act does not stop at Bitcoin acquisition. It also introduces a framework for managing Bitcoin securely within Treasury vaults. It aims to reduce national debt by half by 2045. This would serve as a hedge against inflation and a potential powerhouse for US debt management.

President-elect Trump publicly endorsed the creation of a national Bitcoin reserve during the Bitcoin 2024 conference in Nashville. His remarks continue to stir interest among crypto proponents and Republicans as the then-presidential aspirant emphasized Bitcoin as a “core of financial independence” for the US.

 “It will be the policy of my administration…to keep 100% of all the Bitcoin the US government currently holds or acquires into the future. This will serve in effect as the core of the strategic national bitcoin stockpile…It’s been taken away from you,” Trump said.

Meanwhile, state governments are also eyeing Bitcoin, with Florida’s Chief Financial Officer Jimmy Patronis recently endorsing Bitcoin as a “strategic reserve” for state pensions. Florida’s pension fund, among other states like Wisconsin and Michigan, would benefit from Bitcoin’s long-term appreciation, diversifying investments amid economic uncertainty.

Nevertheless, while the plan has garnered support, it raises questions about economic risks and global impacts. Some economists warn of potential volatility in tying national debt management to cryptocurrency. However, advocates point to Bitcoin’s finite supply and growing international adoption as a hedge against inflation and market fluctuations.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

With Trump’s support, a Republican-led Congress, and growing state-level backing, the plan has momentum. This makes the concept of a national Bitcoin reserve a closer reality than ever before. If implemented, the BITCOIN Act could place the US at the forefront of a global financial evolution.

“Other countries will follow,” another popular user on X added.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Bitcoin Price Might Never Dip Below $70,000 Again After The US Elections, Here’s Why

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The US presidential elections have come and gone, and the only thing left is the results. Interestingly, a snapshot of the Bitcoin price during the elections showed Bitcoin trading just above $70,000. This is a notable price to follow, as history shows this might be the price support for Bitcoin in the foreseeable future. Interestingly, this phenomenon goes back to the Bitcoin price levels in previous US elections.

Why Bitcoin Price Might Never Dip Below $70,000 Again

Bitcoin has largely been on an uptrend since Monday, when it kicked off a run after it rebounded to the upside from $67,000. This run continued, allowing the Bitcoin average price during the 2024 presidential elections to be around $70,110. 

Historically, U.S. election cycles have often been accompanied by shifts in Bitcoin’s value, marking crucial price points that tend to establish longer-term support levels. 

To understand this trend, we need to look at the past four election cycles. Back in 2012, during the early days of the crypto industry, the Bitcoin price traded at a modest $10 on the US presidential election day, a price point that now seems almost unimaginable. By 2016, Bitcoin’s election-day price had climbed to $710, setting a new baseline that it has never revisited since.

The most interesting one was what happened after the 2020 US presidential election, when the Bitcoin price was trading around $13,555. The Bitcoin price has never revisited this price point again since then up until the time of writing. What’s more interesting is that this price point even served as the lowest support level during the 2022 bear market price crash. 

If these historical trends are any indication, the 2024 election-day price of $70,110 could become a similar stronghold and a price floor for Bitcoin in the coming years.  This level might even serve as critical support should a bear market eventually take hold at any point.

Bitcoin price
Source: X

What’s Next For The Bitcoin Price?

As of now, Bitcoin is trading above $73,200 after experiencing an intense surge over the past 24 hours. This remarkable rally saw Bitcoin climb nearly 10% within a single day, reaching an intraday high of $75,358. This milestone has now become Bitcoin’s highest trading level, as it broke past its previous all-time high of $73,737 in March 2024.

Although the Bitcoin price has pulled back slightly likely due to some investors cashing in on recent profits, the rally is expected to resume anytime from now. Considering this momentum, Bitcoin remains well-positioned to challenge the $80,000 mark before the end of November, especially if buying interest continues to drive the current uptrend.

Bitcoin price chart from Tradingview.com
BTC price above $74,000 | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com



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Bitcoin Price After US Presidential Elections: Here’s How BTC Reacted To Previous Winners

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Market analysts have continued to deliberate on how the Bitcoin price could react to a Donald Trump or Kamala Harris victory in the US presidential elections. History indicates that Bitcoin’s future trajectory is bullish, irrespective of who wins the elections. 

How The Bitcoin Price Has Reacted To Previous Winners

The Bitcoin price has always hit a new all-time high (ATH) regardless of the winners in the past US presidential elections. In 2012, after Barack Obama won the elections, Bitcoin rallied and reached a new ATH of $1,200 in 2013. Its price then consolidated until the next election in 2016. 

Bitcoin price 1
Source: X

The 2016 US presidential elections, which Donald Trump won, also sparked the beginning of another impressive rally for the Bitcoin price, which rose to a new ATH of $19,000 the following year. In 2020, following Joe Biden’s victory in the US presidential election, BTC rose to a new ATH of $69,000. 

The Bitcoin price rally after the US presidential elections is believed to be due to the market certainty that the election aftermath provides. Meanwhile, based on history, the BTC rally could begin as soon as December, with the flagship crypto hitting a new ATH as soon as January 2024. 

In 2016, the Bitcoin price rally began about three weeks before the election and went on to hit a new high in the first week of January 2017. In 2020, BTC had also consolidated for about six months before it began to rally from $11,000 just about three weeks before the US elections and then went on to reach a new high of $42,000 in January 2021.

Bitcoin’s recent price action also looks to be playing out the same way as BTC began rallying in mid-October and even came close to hitting its current ATH of $73,700 late last month. As such, there is the possibility that the flagship crypto could again retest this ATH and surpass it as soon as January 2024 or even before then. 

There Could Be Some Volatility In The Coming Days

In an X post, Crypto analyst Ali Martinez warned that the days following the last three US presidential elections have been volatile for the Bitcoin price. However, he added that the overall trend has stayed upward. 

Bitcoin price 2
Source: X

Economist and crypto analyst Alex Krüger also warned about the potential pullback the Bitcoin price could face after the US elections. He claimed that there is a 45% chance that BTC could drop to as low as $65,000 if Kamala Harris wins the elections. 

Due to his pro-crypto stance, Donald Trump looks to be the most preferred candidate in the crypto community. As such, the market could initially react negatively to a Harris win while taking in Trump’s loss. 

At the time of writing, the Bitcoin price is trading at around $68,000, down in the last 24 hours, according to data from CoinMarketCap. 

Bitcoin price chart from Tradingview.com
BTC price pushes above $68,000 again | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com



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