While speaking to CNBC, BlackRock CEO Larry Fink said that he is not concerned about excessive leverage in Bitcoin (BTC) and the cryptocurrency market. Fink further stated that he is very bullish on the next 12 months of the market. Is this a sign to enter the cryptocurrency market? Let’s discuss.

Should You Follow BlackRock’s Bullish Statement On Bitcoin?

BlackRock is the world’s largest asset manager with about $15 trillion worth of assets under management (AUM). The company entered the cryptocurrency sector in 2024 after the launch of its IBIT Bitcoin ETF. The entry of large financial institutions propelled the cryptocurrency sector into financial mainstream. Moreover, the movement of funds in and out of the crypto market by the likes of BlackRock often leads to some price swings.

According to Farside Investors, BlackRock has purchased more than $200 million worth of Bitcoin (BTC) in the last two days. The purchase aligns with BTC’s recent recovery. The asset has reclaimed the $64,000 price level but has since entered a sideways trajectory.

BlackRock’s Bitcoin (BTC) purchase could be fueled by positive inflation data in the US. CPI (Consumer Price Index) figures fell by 0.4% in June, the biggest since April 2020. The development may have led to a spike in investor sentiment.

Also Read: Cryptocurrency Market Surges After Inflation Dip: Can It Sustain?

Given Larry Fink’s bullish statement and a dip in inflation figures, we could see Bitcoin (BTC) continue its price rebound. However, there are some risks. The US-Iran conflict has led to some worry among investors and economists. Oil prices have already surged and the July CPI figures could come in hotter than June’s. Higher inflation may lead to an interest rate hike from the Federal Reserve. Such a move could lead to a dip in investor confidence. Bitcoin (BTC) could take a hit under such circumstances.