BlackRock CEO Larry Fink Attributes Bitcoin Rally to Increasing Interest in Cryptocurrencies
In a recent interview, BlackRock CEO Larry Fink stated that the recent rally in Bitcoin’s price can be attributed to the growing interest and demand for cryptocurrencies. Fink made these remarks in response to a false news report about the approval of a spot ETF, which temporarily caused Bitcoin’s value to surge.
While Fink did not comment on BlackRock’s own application for a spot Bitcoin ETF, he acknowledged that clients from around the world have been expressing their interest in crypto. He believes that the current rally is not solely based on rumors but also reflects a flight to quality amid global issues such as the Israeli war and terrorism.
Fink stated, “I think there’s more people running into a flight to quality, whether that is in Treasuries, gold or crypto, depending on how you think of it. And I believe crypto will play that type of role, as a flight to quality.”
Bitcoin Price Soars Following False Report
On Monday, Bitcoin’s price reached nearly $30,000 after a fake post claimed that the BlackRock ETF had received approval from the SEC. Although the price declined once the report was debunked, Bitcoin managed to retain some gains.
As of now, Bitcoin is trading at $28,200, showing a 1% increase over the past day. It has experienced a 7.4% increase over the past month and an impressive 47.4% gain over the past year, partly due to anticipation surrounding the approval of a spot ETF.
Analysts Predict SEC Approval of Bitcoin ETFs
JPMorgan analysts led by Nikolaos Panigirtzoglou have suggested that the SEC will likely be compelled to approve multiple spot Bitcoin ETF applications following Grayscale’s recent victory. The court ruled in favor of Ripple in the ongoing SEC lawsuit, stating that selling XRP on exchanges does not constitute an investment contract.
The JPMorgan analysts believe that the SEC would have to retroactively withdraw its previous approval of futures-based Bitcoin ETFs in order to defend its denial of Grayscale’s proposal. However, such a move would be disruptive and embarrassing for the SEC. Therefore, it is more likely that the SEC will be forced to approve pending spot Bitcoin ETF applications, including those from Grayscale.
Hot Take: Growing Interest and Demand for Cryptocurrencies Drive Bitcoin Rally
The recent surge in Bitcoin’s price can be attributed to the increasing interest and demand for cryptocurrencies worldwide. BlackRock CEO Larry Fink acknowledges this trend and believes that crypto serves as a flight to quality amid global uncertainties. Although a false report initially caused a spike in Bitcoin’s value, it managed to sustain some gains. Analysts predict that the SEC may have to approve spot Bitcoin ETF applications following recent legal developments. Overall, the future of cryptocurrencies looks promising as they continue to gain traction among investors.
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