BlackRock Believe Crypto Should Make Up 1-3% Of Portfolio As Macro Factors Are Driving Bitcoin’s Relevance
At its recent Digital Asset Conference, BlackRock stated that this is just the beginning while refusing to put a limit on the price of Bitcoin.
According to Jay Jacobs, US Head of Thematic and Active ETFs at BlackRock, the world’s most valuable digital currency by market cap is once again approaching $65,000, and this is being driven by Bitcoin’s ties to broader macroeconomic issues.
Ok so BlackRock is now presenting slides with the dollar losing purchasing power next to a diagram of the ‘characteristics’ of money.
How are we not at $1,000,000 BTC yet? pic.twitter.com/vcjPThJiXs
— Dennis Porter (@Dennis_Porter_) October 5, 2024
BlackRock Bullish On Crypto With Its Main Focus To ‘Provide High-Quality Access To Bitcoin’
Reporting from the Digital Assets Conference co-hosted by Mercado Bitcoin, CME Group, Deribit, and Fireblocks, our Journalist Cassio Gusson is here to take you to the heart of the action.
Speaking at Blackrock’s recent Digital Assets Conference in Brazil, Jacobs argued that in times of geopolitical uncertainty, Bitcoin tends to perform similarly to gold, which is widely regarded as a safe-haven asset during crises.
While BlackRock refused to set price targets for Bitcoin, Jacobs was keen to stress its strong potential for institutional adoption. The creation of ETFs has lowered the previously difficult barrier to entry for investment into Bitcoin throughout the US.
“Our primary goal is to provide high-quality access to Bitcoin,” Jacobs explained before adding, “The starting point is: Can we put it in an ETF and make it more accessible to more people?”
During Blackrock’s Digital Asset Conference, Jay Jacob’s presentation also focused on Bitcoin volatility and how the asset manager believes it will continue to fall as its price increases.
One other interesting statement from Blackrock during the conference is that they believe it is key for clients to have 1-3% of their portfolios in digital assets. This is an extremely bullish statement for the industry, coming from the world’s largest asset manager with nearly $9.1 trillion in AUM (assets under management).
RELATED: Institutional Money Is Just The Start: BlackRock Eye’s $30 Trillion Bitcoin Opportunity
What Are The Key Macro Factors To Watch For Bitcoin
BREAKING: The S&P 500 closes the week above 5,750 and now trades up 21.2% in 2024.
Unprecedented strength. pic.twitter.com/aZvczkpZ1E
— The Kobeissi Letter (@KobeissiLetter) October 4, 2024
Major stock market index, the S&P 500, continues to set fresh, all-time high prices, along with the Dow Jones Industrial Average and the Nasdaq Composite. With Bitcoins historical ties to the stock market, the performance of these major indexes should be welcome news for Bitcoin as it pushes toward $70,000 and beyond
The recent US Federal Reserve rate cut and China’s announcement of a $1 trillion (USD) stimulus package to revive its lagging financial sector are two more macroeconomic factors that look primed to benefit risk-on assets such as Bitcoin and the rest of the digital asset market.
The combined GDP of China and the US exceeds $40 trillion USD; therefore, these two powerhouse nations are introducing measures and money that will increase the appetite for risk-on assets, which should be seen as unbelievably bullish for the crypto industry.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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