BlackRock CEO Larry Fink Warns of Potential 20% Further Decline in Market

Key Points:

• BlackRock CEO Larry Fink warned that the market could potentially drop another 20%, but he considers the current downturn a long-term buying opportunity, noting that there is no systemic risk.

• He emphasized that inflation is still higher than anticipated and stated that the Federal Reserve is unlikely to lower interest rates this year, even amid recession fears.

• Fink also expressed concern over bitcoin's growing popularity, suggesting it could challenge the U.S. dollar as a safe haven if it continues to be seen as a more secure store of value.

BlackRock CEO Larry Fink stated that the market might experience an additional 20% decline, but he views the current downturn as a long-term buying opportunity, as he believes there is no systemic risk in the current situation.

"I see it more as a buying opportunity than a selling opportunity, but that doesn't mean we can't see further declines," Fink remarked during his appearance at the Economic Club of New York on Monday.

He pointed out that inflation is more persistent than expected and that many already view the U.S. economy as being in a recession. As a result, Fink does not foresee the Federal Reserve cutting interest rates this year.

In a shareholder letter last month, Fink also warned about Bitcoin's (BTC) growing threat to the U.S. dollar, suggesting that the dollar could weaken if Americans start viewing the cryptocurrency as a safer asset.

Markets, including the cryptocurrency sector, have faced significant turbulence since U.S. President Donald Trump announced new tariffs on imported goods. Bitcoin (BTC) has dropped by 5% in the last five days and 11% over the past month. Stock markets have experienced even greater losses, with the S&P 500 down by 13% and the Nasdaq falling 15%.