BlackRock, the prominent American multinational investment management company, has once again emphasized its enduring belief in the Bitcoin Potential as a strategic asset. In a recent statement, the company reiterated a school of thought that has been gaining traction in the financial world for years. According to the investment firm, BTC is a good hedge against the growing global disorder, which may arise from growing distrust in governments, banks and fiat currencies.
Reflecting on this outlook, renowned cryptocurrency analyst Michaël van de Poppe aligns with BlackRock’s outlook, predicting a Bitcoin price of up to $600,000 in the current market cycle.
BlackRock’s Involvement with Bitcoin
There’s no denying the fact that BlackRock’s decision to invest in Bitcoin in 2023 through Spot Bitcoin ETFs was a turning point for the cryptocurrency. As the world’s largest asset manager, this move resonated throughout the investment community and affirmed Bitcoin’s growing role as a legitimate asset class.
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BlackRock CEO Larry Fink, who was once a proud Bitcoin skeptichas changed his stance and become an advocate for investors to add Bitcoin to their portfolio to hedge against inflation. According to himBitcoin “is an asset class that protects you.”
In a similar statement, Blackrock noted that Bitcoin could be a “hedge against rising global disorder and declining trust in governments, banks and fiat currencies.” This comes amid concerns over inflation in economies around the world since the start of the year.
The company’s outlook echoes the sentiments of many investors who believe that as cracks in conventional financial systems become more apparent, BTC will play a critical role in preserving wealth as its value continues to rise in the future. One such investor is Michaël van de Poppe, a big Bitcoin enthusiast.
In response to a social media post mentioning BlackRock’s comments, van de Poppe noted that Bitcoin’s current valuation is still too low. In terms of a correct valuation, the analyst notes a target between $300,000 and $600,000. Bitcoin is currently trading at $57,983, which represents price increases of 417% and 935%, respectively.
That explains it all.
The current assessment of #Bitcoin is still super low.
I wouldn’t be surprised by $300,000-600,000 this cycle. https://t.co/5GUaBPMZ6A
-Michaël van de Poppe (@CryptoMichNL) September 12, 2024
What’s next for BTC?
Although BTC is up 3.89% in seven days, continues to hover below $58,000 in what feels like forever. This is because Spot Bitcoin ETFs, which recently had two days of influxes after weeks of consecutive departures, recently registered another day of departure. This could suggest a slowdown in the growing bullish sentiment among institutional investors.
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From a technical perspective, Bitcoin faces critical resistance at several key price levels. The first significant hurdle for the cryptocurrency would be breaking above the $60,000 mark and then $62,000 with strong upward momentum.
Featured image created with Dall.E, chart from Tradingview.com