BlackRock Reveals It’s Quietly Preparing For A $35 Trillion Federal Reserve Dollar Crisis With Bitcoin – Anticipates Rapid Price Surge

The price of Bitcoin has surpassed the $62,000 mark, with market participants reacting to unexpected moves by the Federal Reserve, including a surprising 50 basis point rate cut. This development has ignited anticipation of a new liquidity cycle, positioning the Bitcoin and broader cryptocurrency markets on the brink of significant advancement.

Amid escalating fears of a potential collapse of the U.S. dollar, BlackRock, the world’s leading asset manager, has highlighted “increasing worries” regarding the burgeoning $35 trillion U.S. national debt. This mounting debt is expected to enhance “institutional interest in Bitcoin.”

“In both domestic and international arenas, the escalating concerns surrounding U.S. federal deficits and debt have heightened the attractiveness of alternative reserve assets. These assets serve as potential safeguards against future events that could adversely impact the U.S. dollar,” stated BlackRock’s Chief Investment Officer for Exchange-Traded Funds (ETF), alongside the heads of its crypto and fixed income global macro divisions, in a document presenting Bitcoin as a viable investment option.

Bloomberg Intelligence ETF analyst Eric Balchunas shared on X (formerly Twitter), “Some refer to Bitcoin as the second amendment of money,” noting that the U.S. debt, which stands at $35 trillion and increases by $1 trillion approximately every 100 days, shows “no sign of abating.”

The BlackRock paper further noted, “This trend is also evident in other nations where debt levels have surged significantly. From our client interactions to date, this trend accounts for a large part of the recent rise in institutional interest in Bitcoin.”

Managing approximately $10 trillion in assets, BlackRock characterizes Bitcoin as a “unique diversifier” that can protect against economic and political uncertainties.

“Although Bitcoin has occasionally moved in tandem with equities and other risk assets in the short term, its long-term drivers are fundamentally different and often inversely related to most traditional investment vehicles,” the paper concluded.

In July, BlackRock CEO Larry Fink admitted he was “wrong” about Bitcoin after previously criticizing it as “an index of money laundering.” He now recognizes Bitcoin as “digital gold” and a “legitimate” financial asset.

Last year, BlackRock’s initiative to launch a fully-fledged U.S. spot Bitcoin exchange-traded fund (ETF) significantly influenced Bitcoin’s price trajectory in 2024, as Wall Street increasingly invested in the cryptocurrency market.

By May, BlackRock’s iShares Bitcoin Trust (IBIT) had surpassed the Grayscale Bitcoin Trust (GBTC) to become the largest Bitcoin exchange-traded investment fund globally, with IBIT’s inflows recently exceeding $21 billion.

The rally in Bitcoin prices following the Federal Reserve’s historic 0.5% interest rate cut is widely regarded by Bitcoin and cryptocurrency analysts as the onset of a new bull market for Bitcoin.

“Several macroeconomic factors, including geopolitical tensions and election uncertainties, currently influence the outlook for Bitcoin and other risk assets. However, these markets stand to gain from the Federal Reserve’s shift towards a more dovish stance,” commented Samir Kerbage, Chief Investment Officer at Hashdex, a Bitcoin and crypto investment firm, in an email statement.

“Our long-term investment perspective on Bitcoin remains unchanged. Regardless of the short-term movements in monetary policy, Bitcoin is well-positioned for growth as institutional adoption continues to accelerate.”

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