The CEO of BlackRock, Larry Fink, suggested that the market might experience a further 20% decline; however, he believes that the ongoing pullback represents a long-term buying opportunity since it does not indicate a systemic risk.
During his remarks at the Economic Club of New York on Monday, Fink stated, “I view it more as a buying opportunity than a selling opportunity, but that doesn’t imply we can’t decrease further.”
He pointed out that inflationary pressures are greater than many in the market predict, and a substantial number already consider the U.S. to be in a recession. Consequently, he does not foresee the Federal Reserve making any interest rate cuts this year.
In a letter issued to shareholders last month, Fink raised concerns about Bitcoin’s (BTC) potential to undermine the U.S. dollar, which may deteriorate if Americans start seeing the cryptocurrency as a safer investment.
The markets, including the cryptocurrency sector, have been volatile since U.S. President Donald Trump announced multiple tariffs on imported goods. Currently, BTC is trading 5% lower over the last week and down 11% in the past month. The stock market has faced even sharper declines with the S&P 500 and Nasdaq falling by 13% and 15%, respectively.