Bitcoin News Today: BlackRock CEO signals 25 basis point rate cut, cites inflation, crypto pressures

BlackRock CEO Larry Fink has publicly urged the Federal Reserve to implement interest rate cuts, signaling growing concerns over global inflation and the U.S. dollar’s long-term dominance. Speaking at the Future Investment Initiative in Saudi Arabia, Fink emphasized that embedded inflationary pressures remain a critical risk, advocating for a proactive approach to monetary policy. “It’s fair to say we’re going to have at least a 25 basis point cut,” he stated, while cautioning that “greater inflation than we’ve ever seen” could persist [3]. His remarks align with broader market expectations, as bond markets have already priced in potential easing measures to address inflation and stimulate economic activity [3].

Fink’s call for rate cuts reflects a strategic shift by BlackRock, the world’s largest asset manager, toward embracing digital assets and advocating for regulatory clarity. He highlighted the growing influence of cryptocurrencies like Bitcoin, warning that delays in policy adjustments could accelerate the erosion of the dollar’s status as the primary reserve currency. “If the U.S. continues to delay rate adjustments, the risk of losing this status accelerates,” he noted [1]. These comments follow increased institutional interest in Bitcoin, with Fink expressing cautious optimism about tokenized funds, which he described as likely to become as mainstream as ETFs [2].

The potential implementation of rate cuts could trigger significant market reactions across equities, bonds, and cryptocurrencies. Fink acknowledged that BTC and ETH, highly sensitive to monetary policy shifts, may experience volatility depending on the Fed’s decisions. His advocacy adds weight to arguments that lower rates could bolster risk assets while mitigating dollar depreciation risks. However, analysts caution that aggressive cuts risk exacerbating inflation if not carefully calibrated [3].

BlackRock’s influence on market sentiment was further underscored by its Ethereum ETF, which recently became the third-fastest fund to reach $10 billion in assets, reflecting strong retail and institutional demand [6]. Fink’s rate cut calls may also align with the firm’s broader strategy to expand in emerging markets, as evidenced by his recent meeting with Saudi officials to explore investment opportunities in the region [7].

While the Federal Reserve has paused rate hikes, uncertainty remains about the timing of potential easing. Fink’s stance adds to the debate, with the bond market currently pricing in cuts but actual Fed decisions contingent on incoming economic data, such as employment and inflation metrics [3]. His warnings about Bitcoin’s volatility, including comparisons to the dot-com era’s speculative risks, highlight a pragmatic approach to digital assets [4].

Sources:

[1] [BlackRock urges Fed to cut rates](https://www.reddit.com/r/CryptoCurrency/comments/1ma10lh/blackrock_urges_fed_to_cut_rates/)

[2] [The Economist: If stablecoins are truly useful](https://www.binance.com/en/square/post/27444361635209)

[3] [The coming Bitcoin treasury bubble](https://cryptoslate.com/the-coming-bitcoin-treasury-bubble-could-rival-the-dot-com-era-with-11t-of-capital-chasing-btc/)

[4] [Cautious or promising? Swiss CIOs weigh up record](https://citywire.com/ch/news/cautious-or-promising-swiss-cios-weigh-up-record-bitcoin-price/a2470852)

[6] [L'ETF Ethereum de BlackRock devient le 3e plus rapide](https://www.marketscreener.com/quote/stock/BLACKROCK-INC-176512022/)

[7] [Saudi real estate loans up 15%](https://www.arabnews.com/node/2609394/business-economy)