BlackRock CEO says fear drives crypto market rally as gold slips under $4,000
Investors are worried about increasing government debt and debasement and are flocking to gold and crypto, says Larry Fink.
- BlackRock CEO Larry Fink makes a case for crypto and gold
- Investors are increasingly concerned about government debt and currency debasement
- Fink’s case contributes to Bitcoin’s ‘digital gold’ narrative
Bitcoin’s credibility as a macro hedge just got a major boost. On Tuesday, October 28, BlackRock CEO Larry Fink put the digital asset in the same category as gold. During a conference in Riyadh, the head of the world’s largest asset manager called both gold and crypto “assets of fear,” amid ongoing macroeconomic uncertainty.
Fink’s remarks come amid an ongoing narrative about the “debasement trade,” centered around the decline of the world’s major currencies, including the dollar. Amid fears of the dollar declining, investors are selling government debt, treasuries, and major currencies. At the same time, they are flocking to precious metals and crypto.
U.S. depends too much on Treasury sales: BlackRock CEO
Much of this uncertainty is driven by the U.S., both due to the trade war with China and the ongoing government shutdown. Still, Fink explains that the U.S. remains a preferred investment destination, despite some outflows. However, he sees potential issues if foreign investors start dumping U.S. treasuries.
Despite ongoing macro uncertainty, the gold market is cooling off. Gold is down 6% from record highs, dipping below $4,000 and trading at $3,957.79 per ounce.
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