- And this could spur the BTC exchange rate
- Fink also commented on the Fed’s future actions
- He believes the rate will be raised at least twice more
- And the head of BlackRock believes a crisis is coming in the US housing market
BlackRock fund head Lawrence Fin believes that this whole situation around US government debt problems has significantly eroded global confidence in the dollar. This could provide a needed boost to bitcoin and some other crypto-assets.
Fink shared his views on the matter at a Deutsche Bank conference on May 31.. His comments came shortly after it was revealed that a bill to raise the national debt limit had been approved by the U.S. House of Representatives.
While the default crisis appears to have been averted, Fink sees the situation as more than serious. The very fact that the federal government may go bankrupt undermines the dollar’s status.
Decreasing demand for the USD and capital outflows could favorably affect the BTC exchange rate. Bitcoin has “digital dollar” status, which has led some investors to view it as a hedge asset.
The increased demand for it as a better “safe haven” for savings than the USD will drive up the token’s price. Note that Fink’s conclusions coincide with Glassnode’s. Earlier, the agency said a new market breakthrough is coming.
The Fed and the U.S. real estate market
Finck paid attention to several other issues besides government debt. Thus, in his opinion, the Fed will raise the interest rate at least twice more.
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It’s interesting that the head of BlackRock also touched on the potential crisis in the real estate market. Interestingly, we have heard this argument before, from the CEO of JPMorgan.
When two experienced financiers talk about the coming crisis, it is definitely worth thinking about.
When two experienced financiers talk about the coming crisis, it is definitely worth thinking about.