Key Takeaways

Larry Fink sees Bitcoin as an “asset of fear.”

Fink and analyst Tom Lee both highlighted the same problem.

Bitcoin is nearing a critical technical moment, say analysts.

BlackRock CEO Larry Fink has notably shifted his stance on Bitcoin, even as he maintains that many investors buy it as a response to fear and uncertainty.

While Fink has grown increasingly positive on Bitcoin’s long-term potential, he also highlighted one “big problem” that he views as the asset’s major structural challenge.

Speaking at a New York Times DealBook Summit, Fink said that investors often turn to Bitcoin during periods of concern about personal safety, financial security, geopolitical tension, or long-term fiscal risks such as rising deficits or the debasement of traditional currencies.

“Bitcoin is an asset of fear,” Fink said.

“And when you’re less fearful — like when we had a trade agreement with China — you saw a shift downward.”

He noted that even recent discussions about a possible settlement in Ukraine triggered a slight decline in Bitcoin’s price.

Fink added that the cryptocurrency’s latest 20%–25% decline marks the third similar drop since the launch of BlackRock’s IBIT spot Bitcoin ETF.

While he believes Bitcoin can serve as a hedge for long-term portfolio protection, he warned that short-term traders face substantial turbulence:

“If you bought it for a trade, it’s a very volatile asset. You’re going to have to be really good at market timing, which most people aren’t.”

“If you’re buying it as a hedge against all your hope, then it has a meaningful impact on a portfolio.”

Fink also pointed to what he called a major issue affecting Bitcoin’s market behavior:

“The other big problem of Bitcoin is it is still heavily influenced by leveraged players,” he said.

This view was echoed by BitMine’s Tom Lee, who suggested that Bitcoin’s recent downturn stems largely from de-leveraging rather than cyclical factors tied to the halving.

“Crypto was up 36% until October 10th and then it’s gone straight down,” Lee said, comparing the current environment to the period following the collapse of FTX.

Lee argued that the market’s recent weakness is more about structure and leverage than long-term fundamentals.

BlackRock’s IBIT ETF remains one of the most successful U.S. spot Bitcoin ETFs since approval, accumulating tens of billions in inflows.

Still, Fink’s remarks highlight ongoing concerns about Bitcoin’s integration into broader financial markets.

According to analyst Valdrin Tahiri, Bitcoin’s price action may be approaching a pivotal moment.

He wrote that BTC’s next move depends on whether it can break above a key diagonal resistance level.

A successful breakout, he noted, could spark a run toward $100,000 and trigger substantial short liquidations.

However, failure to break out may lead to further consolidation, leaving the market vulnerable to a deeper retracement if buyers fail to regain momentum.

Tahiri concluded that Bitcoin’s upcoming price movement will determine whether the market is entering a full trend reversal or merely undergoing a temporary squeeze.

The post Blackrock’s Larry Fink Goes Bullish on Bitcoin but Reveals Its One ‘Big Problem' appeared first on ccn.com.