BlackRock has been defending Bitcoin's volatility for months, and says it is betting on it to protect itself from an imminent crisis in the US. According to experts, the asset manager is preparing to be at the forefront of a financial crisis in the US, which would come about due to uncontrolled debt issuance.
In line with BlackRock, the world's richest man, Elon Musk, has already expressed his opinion about a possible "total collapse" of the dollar. Musk has commented on his social media several times that the Federal Reserve was in danger by issuing so much debt.
Now, BlackRock argues that as fears mount the US dollar is “on the brink of a total collapse,” and the world’s largest asset manager has warned of “growing concerns” around the US’s growing $35 trillion debt pile that it predicts will drive “institutional interest in bitcoin.”
In fact, US debt is already at over $36 trillion, at alarming levels and could further worsen the economic situation by the end of 2024.
Furthermore, it was not only at this time that BlackRock criticized the US position on economic measures in the country. At an even more recent event in Faria Lima, organized by MB, Jay Jacobs, Head of Thematics and Active Equity ETFs at BlackRock criticized fiat currencies and spoke about US inflation.
During an event attended by BlockTrends, Jacobs stated that Bitcoin is an excellent hedge. He comments that Americans used to not worry about inflation, and that they now need to pay more attention to these issues.
BlackRock's Bitcoin (BTC) spot ETF is among the top 10 ETFs launched in the past decade by total assets. Both ETFs have $34.2 billion in total assets. BlackRock's IBIT has $23.2 billion and FBTC has $11 billion, according to data from Coinglass.
Therefore, many analysts see BlackRock’s move towards Bitcoin as a direct bet against a coming US crisis. The scarcity of the cryptocurrency is one of the main features that BlackRock highlights.
