The cryptocurrency market has been experiencing high volatility in the past few months. Institutional traders have faced huge losses as major companies like Babel Finance, Celsius community etc are undergoing liquidity shortages.
In spite of all this, Rick Rieder who is the Chief Investment Officer of worldwide mounted earnings at BlackRock has claimed that Bitcoin and other cryptocurrencies are reliable financial assets. With regards to Bitcoin, he speculates that in two to three years its value will increase substantially.
Buy the Dip via eToro Platform Now
Your capital is at risk.
BlackRock CIO Claims that Cryptocurrency is a Sturdy Asset
Rick Rieder who is the Chief Investment Officer (CIO) of Global Fixed Income at Blackrock, in an interview with Yahoo finance expressed his views on the cryptocurrency sector. In order to curb the rising inflation, the Federal Reserve has increased the interest rate by 75 base points. The executive acknowledging the increase in the interest rates explained how it will impact the cryptocurrency market.
He stated that these interest rates will build up a lot of leverage around Cryptocurrency. When interest rates are kept low for an extended period of time and policies are eased, a lot of the leverage that was built up around crypto comes unglued quickly. Rieder emphasized that Bitcoin and crypto, in general, is a durable asset, and trading in the crypto market is still a wise financial decision. Investors misunderstand the crypto market as there is so much excess built around it in cash.
Rieder further explained this by providing the example of how in the 1990s and early 2000s people thought of the internet as a bad idea. But this was later proved wrong. The same is happening in crypto. When one creates excess around a particular technology the only option left is to de gear, and disinvest thus facing market losses.
Some of the top cryptocurrencies on the market have found use in projects like decentralised finance or as a form of payment (DeFi). However, because cryptocurrencies lacked inherent worth, Rieder said it was “pretty difficult” to analyse their prices. When asked about the prices of major cryptos in the future, Rieder went on record and said that in all these conditions, one tends to overshoot.
His guess is that you will most likely acquire some drawback to move ahead from there. It is extremely difficult to accurately predict the fair value of various cryptos. He also said that crypto costs had related value dynamics to that of gold.
Visit eToro to Buy Bitcoin Now
Your capital is at risk.
Bitcoin Price Will Steadily Increase in the Coming Years
This is not the first time Rieder has shown confidence in Bitcoin. In November 2020, Rieder claimed that cryptocurrencies, including Bitcoin, were here to stay and had the ability to trade gold. At the time, Rieder added that handing a bar of gold around was “far less practicable” than Bitcoin. In September 2021, he expressed similar comments and acknowledged his ownership of Bitcoin.
The bellwether digital asset’s resilience, which may potentially replace gold “to a big extent,” was praised by Rieder, who also forecasts that the price of Bitcoin could increase “substantially” in the future. Although Rieder warned that assets under this kind of pressure frequently overshoot to the negative before recovering, he conceded that it is difficult to anticipate where Bitcoin prices will go next.
Bitcoin Price Chart on eToro Platform
After asserting that cryptocurrencies may pose a threat to the hegemony of the US currency, Larry Fink, CEO of BlackRock, said that he thinks they might evolve into a “great asset class.” BlackRock also intends to introduce a blockchain and technology exchange-traded fund (ETF), leveraging the realm of decentralised finance, according to a recent filing with the United States Securities & Exchange Commission (SEC).
Your capital is at risk.
Firmly believing that Bitcoin and other crypto are reliable assets, the global financial company BlackRock funds is ready to launch a new Bitcoin trading service. It will soon enable its clients to trade in crypto through its new asset managers technology that is capable of managing trillions of dollars in assets.
Read More:
Lucky Block – Our Recommended Crypto of 2022
- New Crypto Games Platform
- Featured in Forbes, Nasdaq.com, Yahoo Finance
- LBLOCK Token Up 1000%+ From Presale
- Listed on Pancakeswap, LBank
- Free Tickets to Jackpot Prize Draws for Holders
- Passive Income Rewards – Play to Earn Utility
- 10,000 NFTs Minted in 2022 – Now on NFTLaunchpad.com
- $1 Million NFT Jackpot in May 2022
- Worldwide Decentralized Competitions
