News author: Crypto Emergency
BlackRock CEO Larry Fink stated that investors are increasingly turning to bitcoin and gold as 'fear assets' amid rising debt risks and global economic instability. He mentioned this during a speech at the Future Investment Initiative forum in Riyadh.
'Fear assets' and devaluation trading
According to Fink, the demand for cryptocurrencies and precious metals is growing due to the popularity of so-called 'devaluation trading'—a strategy in which investors dispose of government bonds and currencies like the dollar, yen, and euro in favor of alternative assets.
'You own cryptocurrency assets or gold because you fear the devaluation of your assets. You are concerned about your financial and physical security,' he noted.
The main risk is dependence on external demand
Despite this, Fink emphasized that the USA remains the main destination for global investments for at least the next 18 months. However, he expressed concern that 30–35% of all sales of US Treasury bonds come from foreign buyers. A decrease in their interest, in his opinion, could have serious consequences for the American economy.
Panel opinions: deficits, assets, and growth
Other leaders from the financial industry also spoke on the same panel. Goldman Sachs CEO David Solomon and JPMorgan CEO Jamie Dimon pointed to the rise in budget deficits. Billionaire Bill Ackman added that 'the key is asset growth,' expressing confidence in the solvency of the USA.
Fink, for his part, noted that unlocking private capital could accelerate the country's economic growth to 3%.
From skepticism to recognition of cryptocurrencies
Fink also acknowledged that he radically changed his attitude towards cryptocurrencies since 2017, when he referred to Bitcoin as an 'index of money laundering.' Today, he places digital assets alongside gold as capital protection tools in times of instability.
According to data for the first quarter of 2025, BlackRock attracted $3 billion in digital assets, confirming the growing institutional interest in the crypto market.
