BlackRock CEO: Looking favorably at the market over the next 12 months; after leverage in the crypto market was liquidated, it has become more stable.

BlackRock CEO Larry Fink is optimistic about the market over the next 12 months, saying that after deleveraging cleared in the crypto market, it has become more stable.
(Background: Bloomberg warned that high leverage led to a $1.5 billion liquidation)
(Background added: BlackRock’s 2030 goal to become the dominant crypto asset manager)

Table of contents

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• Three reasons BlackRock is bullish
  • Technical revolution drives margin expansion
  • Total leverage is lower than during the financial crisis
  • Deleveraging in the crypto market brings stability
• BlockTempo quick take: whether the replicability of technical upside exists in BlackRock’s own view

BlackRock (BlackRock) CEO Larry Fink, in an interview with CNBC, said he is “very optimistic” about the market over the next 12 months, and believes the technical revolution will drive more companies to improve profit margins. Fink also pointed out that after multiple rounds of deleveraging, the crypto market is more stable, but warned that localized risks may still exist.

BlackRock is the world’s largest asset manager, with assets under management exceeding $1.05 trillion. In a CNBC interview on July 15, Fink raised three core points: the market outlook, the overall leverage level, and structural changes in Bitcoin and the crypto market.

Three reasons BlackRock is bullish

Technical revolution drives margin expansion

Fink’s main logic for his bullish stance on the next 12 months comes from the trend of “technical revolution driving profit margin improvements.” He said:

“I’m very optimistic about the market over the next 12 months. I believe the technical revolution will help more companies improve their profit margins.”

BlackRock’s own financial data provides evidence for this view: over the past 12 months, profit margins increased by 260 basis points due to improved technology applications, and it did so without adding any employees while adding $1 trillion in assets under management.

Total leverage is lower than during the financial crisis

Fink compared the current financial system with the 2008 to 2009 financial crisis period, noting that today’s overall leverage level is “far lower than then”:

“We don’t see too much hidden leverage. Given the size of today’s capital markets, leverage isn’t that high.”

However, he did not rule out risks entirely, especially mentioning that “pockets of localized risk” may still be hidden in certain assets, financial products, or international markets. This means his optimism is based on overall leverage being controllable, rather than assuming every corner has no problems.

Deleveraging in the crypto market brings stability

When discussing Bitcoin and cryptocurrencies, Fink focused on “market stability” rather than making specific price predictions. He said that in early crypto cycles, there were too many participants using leverage, and after multiple rounds of liquidations, the market structure has become healthier:

“I’ve always been concerned about leverage problems in Bitcoin and cryptocurrencies. Too many participants use leverage, which is why we need a cleanup. I think at these price levels, the market is more stable.”

BlackRock views this round of deleveraging as a constructive structural change. While it does not mean volatility disappears completely, reducing reliance on borrowed positions does support a more stable market foundation.

BlockTempo quick take: whether the technical upside is replicable from BlackRock’s own view

Fink’s arguments are not without basis. BlackRock’s performance over the past year provides concrete numbers: a 260 basis point margin expansion, $1 trillion in incremental AUM, and no incremental headcount. If this logic is projected onto the Taiwan market, Taiwan’s tech sector already has dual advantages—AI chip supply chain (TSMC, MediaTek) and software services (Wistron, Lite-On). If companies can convert AI technology into profit margin expansion similar to that logic, the underlying fundamentals supporting Taiwan’s stock market would be even more solid.

On the other hand, the signals of declining leverage in the crypto market are also worth watching. According to recent data, Bitcoin futures’ unrealized gains have declined, and more and more traders are shifting from high-leverage perpetual contracts to options to gain better downside protection. This shift from “leverage speculation” to “structural allocation” is precisely a typical feature of markets maturing before institutional capital moves in.

Source of this article: Bitcoin.com — Blackrock CEO Larry Fink ‘Very Bullish’ on Markets as Bitcoin Stabilizes

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