Bitcoin could reach $700K amid currency debasement concerns

BlackRock CEO Larry Fink has made headlines by predicting that Bitcoin (CRYPTO:BTC) could soar to $700,000 per coin, driven by fears of currency debasement and economic instability.

Speaking at the World Economic Forum in Davos, Fink emphasised that small allocations from asset managers—between 2% and 5%—could significantly impact Bitcoin's price.

"If you’re frightened about the debasement of your currency or you’re frightened of the economic or political stability of your country, you can have an internationally based instrument called Bitcoin that will overcome those local fears,” he stated.

Fink expressed his belief in Bitcoin as a viable financial instrument but clarified that he was not promoting it.

He also raised concerns about potential inflation over the next year, cautioning against assuming that peak inflation levels have already been reached.

Despite a recent rally in the US Dollar Index and lower-than-expected Consumer Price Index (CPI) data, inflationary fears remain prevalent.

The annual CPI for 2024 was reported at 3.2%, slightly below analysts' expectations of 3.3%.

However, some critics argue that the CPI may not accurately reflect true inflation rates, suggesting they could be significantly higher.

A shareholder proposal submitted to Meta indicated that the actual inflation rate might be double the reported figures.

Fink’s comments come as Bitcoin continues to gain traction among institutional investors.

He revealed discussions with sovereign wealth fund managers about allocating portions of their portfolios to Bitcoin, indicating a growing acceptance of cryptocurrencies as mainstream assets.

“If everybody adopted that conversation, it would be $500,000, $600,000, or $700,000 per Bitcoin,” he noted.

At the time of reporting, the Bitcoin (BTC) price was $102,913.