It is very interesting that those who were having negative sentiments for Bitcoin are now praising it. In his latest talk with the former governor of the Bank of England, Larry Fink, head of BlackRock, claimed Bitcoin could become a global asset.
Bitcoin has a Small Market
The head of the world’s largest asset fund manager agrees on the point that Bitcoin is now an asset class, like many other global assets. It has the potential to catch unlimited investors and traders all around the world, but still, it has not gained enough market capitalization. Due to outstanding features and characteristics, digital currencies can grow into a specific recognized asset class. According to Fink:
Bitcoin has caught the attention and the imagination of many people. Still untested, pretty small market relative to other markets.”
The market cap of the world’s leading digital asset is standing at $555 billion, but in comparison, gold’s market capitalization is standing at $9 trillion. According to Fink, Bitcoin could easily become a global asset if it gains the attention of institutions and investors across the world.
Due to its low market size, it is vulnerable to sudden fluctuations, and whales can easily manipulate it. With a large capital inflow, it could become a stable asset class with the potential to compete with gold.
According to BlackRock’s website, it is the world’s largest asset fund manager holding up to $7.4 trillion dollars in assets under management.
He even said that virtual currencies affected the US dollar effectively, which may undermine the reserve power of the US dollar at a global scale.
Many other hedge fund managers are taking themselves towards the leading digital asset as they see in it a large potential enough to catch a significant portion of gold’s market cap. For instance, former hedge manager Paul Tudor Jones and billionaire Stanley Druckenmiller announced to dedicate a significant part of their portfolios to the flagship cryptocurrency.
After an active part of institutional clients, Bitcoin succeeded in breaking the previous all-time high as the price value touched the figure of $19,800 over many renowned cryptocurrency exchanges. But as a result of bearish pressure, the value dumped, and the price went below $19,000. At press time, the price of the top digital currency is standing at $18,900 with no significant change in the previous 24-hours. The global crypto market is standing at $564 billion after a slight decrease of 2.59% over the day.