BlackRock CEO Larry Fink says: I don’t care anymore About excessive leverage in the Bitcoin market.
Earlier this Wednesday, he told CNBC that cryptocurrencies have been fairly stable after speculative positions were finally washed out.
“I’ve always been concerned about the influence of Bitcoin and cryptocurrencies,” Fink said.
According to BlackRock’s chief, the dynamics have changed significantly. “That’s why we had to flush,” he added. “And I think it’s more consistent at this level.”
Improving profitability with AI
Many of the interviews focused on artificial intelligence rather than cryptocurrencies. Mr. Fink argued that demand for computing infrastructure continues to outstrip supply, and the United States risks falling behind.
Mr. Fink expressed strong optimism about the financial markets next year. He has argued that advances in artificial intelligence will continue to drive corporate profitability. “I’m very bullish on the market over the next 12 months,” he said.
Fink attributed that optimism to rapid technological innovation. “I think technological innovation will improve profit margins for more companies.”
He pointed to BlackRock itself as an example of where AI is already improving efficiency. “We’ve increased our margins by 260 basis points in the last 12 months, and a lot of that is leveraging more and more technology.”
Later in the interview, Fink explained how artificial intelligence is transforming internal operations. “We are able to use technology to process more transactions and process more activities,” he said.
Fink’s Bitcoin transformation
For years, BlackRock’s CEO has been openly skeptical of cryptocurrencies. In 2017, he described Bitcoin as a “beacon for money laundering.” Then, in 2023, he changed his attitude. At the time, BlackRock filed for the industry’s largest spot Bitcoin ETF. At the time, Fink described Bitcoin as an “international asset” that acts as a hedge against currency depreciation. He went on to claim that Bitcoin is “digital gold” and should be used to diversify portfolios.
