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BlackRock, the prominent American multinational investment management corporation, has once again emphasized the enduring belief surrounding Bitcoin’s potential as a strategic asset. In a recent statement, the firm reiterated a school of thought that has been gaining momentum within the financial world for years. According to the investment company, BTC is a valuable tool for hedging against increasing global disorder, which might arise from growing distrust in governments, banks, and fiat currencies.
Reflecting on this perspective, renowned cryptocurrency analyst Michaël van de Poppe aligns with BlackRock’s outlook, predicting a Bitcoin price as high as $600,000 in the current market cycle.
BlackRock’s Involvement With Bitcoin
There’s no denying the fact that BlackRock’s decision to foray into Bitcoin in 2023 through applications of Spot Bitcoin ETFs was a turning point for the cryptocurrency. As the biggest asset manager in the world, this move sent ripples throughout the investment community and affirmed Bitcoin’s growing role as a legitimate asset class.
CEO Larry Fink’s Shift in Stance
Larry Fink, CEO of BlackRock, who was once a proud Bitcoin skeptic, has changed his stance and now advocates for investors adding Bitcoin to their portfolios to hedge against inflation. According to him, Bitcoin “is an asset class that protects you.”
In a similar statement, BlackRock noted that Bitcoin could be a “hedge against increasing global disorder and declining trust in governments, banks, and fiat currencies.” This comes amidst inflation concerns in economies all around the globe since the beginning of the year.
Bitcoin as a Wealth Preserver
The company’s perspective echoes the sentiments of many investors who believe that as the cracks in conventional financial systems become more apparent, BTC will play a critical role in preserving wealth as its value continues to increase in the future. An example of such investors is Michaël van de Poppe, who is a staunch Bitcoin enthusiast.
In reply to a social media post mentioning BlackRock’s comments, van de Poppe noted that Bitcoin’s current valuation is still very low. In terms of correct valuation, the analyst notes a target between $300,000 and $600,000. Bitcoin currently trades at $57,983, which represents price increases of 417% and 935%, respectively.
This explains it all. The current valuation of Bitcoin is still super low. I wouldn’t be surprised with $300,000-600,000 this cycle.
What’s Next For BTC?
Although BTC is up by 3.89% in seven days, it continues to hover beneath $58,000 in what seems like forever. This is because Spot Bitcoin ETFs, which recently went on two days of inflows after weeks of consecutive outflows, recently registered another day of outflow. This could suggest a slowdown in a growing bullish sentiment among institutional investors.
Technical Resistance Levels
From a technical perspective, Bitcoin faces critical resistance at several key price levels. The first significant hurdle for the cryptocurrency would be breaking through the $60,000 mark, followed by $62,000 with strong upward momentum.
As the financial landscape continues to evolve, the role of Bitcoin as a strategic asset and a hedge against global economic uncertainties becomes increasingly prominent. Investors and analysts alike are keeping a close watch on BTC’s performance and its potential to reach new heights in the market.
