Key Takeaways
- Bitcoin surged to over $62,000 after the Fed’s rate cut.
- BlackRock warned of U.S. debt concerns driving Bitcoin interest.
- BlackRock's Bitcoin ETF inflows have surpassed $21 billion in 2024.
The price of Bitcoin surged past $62,000 following the Federal Reserve’s first post-pandemic 0.5% interest rate cut. Many experts believe this could trigger a new liquidity cycle, sparking a potential Bitcoin price boom.
BlackRock, the world’s largest asset manager, has voiced concerns over the $35 trillion U.S. debt, predicting growing institutional interest in Bitcoin. In a report by BlackRock’s ETF, crypto, and fixed income leaders, Bitcoin was described as a “unique diversifier” against economic and political risks, as U.S. debt levels continue to rise.
The report also noted that debt accumulation is not only an issue in the U.S. but has been observed in other countries as well, driving institutional demand for Bitcoin as a potential reserve asset.
The report stated:
This explains a substantial portion of the recent broadening institutional interest in Bitcoin.
BlackRock CEO Larry Fink, who once dismissed Bitcoin, now calls it “digital gold” and has supported Bitcoin ETFs, including the iShares Bitcoin Trust (IBIT), which has surpassed $21 billion in inflows this year.
Bitcoin’s recent rally, supported by the Federal Reserve’s interest rate cut and BlackRock’s growing role in the market, is seen by many as the beginning of a potential new bull run for the asset.
