BlackRock CEO Larry Fink warns markets could drop another 20% but sees it as a buying opportunity
Fink doesn’t expect Federal Reserve to cut interest rates this year despite recession concerns
Markets including crypto have been in turmoil since President Trump announced new tariffs
Bitcoin is down 5% over five days and 11% over the past month
Stocks briefly rose on fake news about a 90-day tariff pause before falling again
BlackRock CEO Larry Fink has warned that markets could experience another 20% drop, but maintains that the current downturn represents a buying opportunity for long-term investors. Speaking at the Economic Club of New York on Monday, Fink stated that the current situation does not pose systemic risk to financial markets.
“I see it more as a buying opportunity than a selling opportunity, but that doesn’t mean we can’t go down further,” Fink said during his appearance. “I would not be taking money off the table right now. It’s a great entry level.”
His comments come as markets have been experiencing turbulence for over 30 consecutive days. The downturn began after U.S. President Donald Trump announced a series of tariffs on imported goods.
The impact has been widespread across both traditional and crypto markets. Bitcoin is currently trading 5% lower over the past five days and 11% lower over the past month. Traditional markets have fared worse, with the S&P 500 down 13% and Nasdaq down 15%.
Fink noted that inflationary pressure remains higher than market participants expect. He added that many executives he has spoken with believe the U.S. is already in a recession.
Despite these recession concerns, Fink does not anticipate the Federal Reserve cutting interest rates this year. In fact, he suggested that rate increases might still be on the table.
“The macro trends across the market remain intact and are not going to change,” Fink explained. He pointed to continued opportunities in tech innovation, artificial intelligence, and other U.S. sectors.
Market Volatility and False Rallies
Markets experienced a brief respite earlier during a U.S. trading session when stocks rose and Bitcoin temporarily climbed above $81,000. The rally was triggered by rumors that the White House was considering a 90-day pause on tariffs.
However, this turned out to be fake news. Once clarified, both stocks and cryptocurrencies quickly gave up their gains.
Bitcoin currently trades around $78,000, showing continued volatility after the turbulence of recent days.
Crypto Concerns
In a letter to shareholders last month, Fink expressed concern about Bitcoin’s potential threat to the U.S. dollar. He warned that the dollar could weaken if Americans come to view cryptocurrency as a safer asset than the national currency.
Despite recent drops in crypto prices, Fink suggested that crypto markets are likely to rally following the massive dump.
The market crash has seen Bitcoin dip below $80,000, touching lows last seen in early November 2024. This comes after reaching all-time highs earlier this year.
Trading patterns show Bitcoin acting as a risk asset similar to tech stocks during this market downturn. This correlation has become more pronounced during periods of economic uncertainty.
Fink’s outlook aligns with his long-term view on investment strategy. While acknowledging short-term pain, he emphasizes looking beyond current market conditions.
The BlackRock CEO remains optimistic about long-term prospects across various sectors. His view suggests that patient investors may find value in current price levels.
Market analysts are closely watching for further comments from Fink and other financial leaders as the situation develops. Their insights may provide clues about potential market direction in coming weeks.
Bitcoin trades around $78,000 at the time of writing, remaining largely negative after the volatility experienced in the past few days.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
