Larry Fink, the CEO of BlackRock, indicates that the market could still face a significant drop of another 20%.
His remarks come amid a sustained market downturn that has led to a decline in stock prices for over 30 consecutive days. The cryptocurrency sector has not been spared either, with Bitcoin (BTC) falling below $80k to reach levels last observed in early November 2024.
During a recent interview, Fink suggested that the current dip presents a buying opportunity.
“I view this more as an opportunity to buy than to sell, but that doesn’t imply we can’t see further declines…I wouldn’t be pulling money out at this moment. It’s an excellent entry point,” he stated.
He believes that macroeconomic trends remain stable and are unlikely to shift, suggesting opportunities in technological innovation, artificial intelligence, and other sectors within the U.S. Furthermore, he anticipates a potential rebound in crypto following the recent large drop.
Earlier in the U.S. trading session, stock prices increased, and Bitcoin briefly rose above $81k due to what was later revealed to be misinformation. Major accounts on X reported that the White House was contemplating a 90-day suspension of tariffs. This news caused the S&P 500, along with cryptocurrencies, to surge, only for the markets to retract those gains after the news was confirmed as false.
Fink also shared his insights on possible interest rate hikes in light of the current market situation, indicating that the Federal Reserve may still consider this option. He noted that many of the other CEOs he has spoken with believe we are currently in a recession.
As of this writing, Bitcoin is trading around $78k, reflecting a largely negative trend following recent market volatility.