BlackRock CEO Larry Fink sees little demand for Bitcoin as a long-term investment

  • Larry Fink, CEO of BlackRock, said the company has seen little interest from investors in Bitcoin.
  • He also noted that investors may not come to the asset manager to get exposure to the leading cryptocurrency.
  • The decreased interest in the leading digital asset could be due to the consolidation in Bitcoin price.

Investment management giant BlackRock recently stated that investor demand for cryptocurrency has subsided.

Bitcoin not on BlackRock investors’ agenda

In a CNBC interview, Larry Fink, CEO of institutional asset manager BlackRock, said there wasn’t much demand for cryptocurrencies.

In 2018, Fink stated that customers weren’t interested in exposure to digital assets. However, the CEO noted an increase in business media attention around Bitcoin and even said that the leading cryptocurrency could be an alternative store of wealth.

BlackRock began investing in Bitcoin futures earlier this year, with an SEC filing revealed that the company held 37 BTC futures contracts as of January.

The manager, chief investment officer of the investment giant, Rick Rieder, announced in February that BlackRock had started to delve into “a bit with the reserve currency” of the cryptocurrency. Rieder also suggested that investors put some of the funds from cash holdings in digital assets, although he didn’t mention a threshold.

Although previously mentioned that cryptocurrencies could become a significant asset class, Fink said the asset manager is now seeing lower investor demand for the leading digital asset. He added:

We see very little in terms of investor demand for such things, but quite honestly [they] may not come to BlackRock for that type of demand.

Fink concluded that the company’s investors are more focused on generating long-term returns over an extended period of time, and that Bitcoin is not part of “those talks”.

Bitcoin price decline saved by buy signal

Bitcoin price was sealed in a descending parallel channel that surfaced in late June. BTC has made lower highs and lower lows that connect the upper and lower bounds of the chart pattern on the 12-hour chart.

Despite recent weakness pushing Bitcoin price towards the downtrend line of the slightly bearish pattern, BTC rebounded slightly after the asset received a buy signal from the Momentum Reversal Indicator (MRI), indicating a local low.

BTC / USDT 12 hour chart

Bitcoin price rebounded 3.7% from swing lows as it tested the 78.6% Fibonacci retracement level at $ 31,450 as support.

Now the middle limit of the parallel descending channel has become resistance, and just a close above that level at $ 32,844 would indicate a rise of $ 730 for BTC, marking the 61.8% Fibonacci retracement level which is the next obstacle acts that with the 50. coincides with the twelve-hour simple moving average (SMA).

However, given the prevailing technical pattern, Bitcoin price is likely to continue to consolidate and BTC could retest the aforementioned 78.2% Fibonacci retracement level if buyers cannot raise prices against the sellers’ distribution.

https://www.youtube.com/watch?v=hrHqUAWcutg

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