Larry Fink Says He “Was Wrong About Crypto” as Bitcoin Demand Shifts

Larry Fink reverses course, calling Bitcoin a fear-driven asset tied to security and global tensions.

Bitcoin’s sharp swings from $125K to $80K highlight volatility that traders and hedge users view differently.

IBIT options surge toward 7.9M contracts as long-only institutions expand Bitcoin positions.

BlackRock CEO Larry Fink says he was wrong about crypto, marking one of his clearest reversals as he described Bitcoin as an asset driven by fear, security concerns, and growing interest from long-term investors.

Bitcoin’s Behavior and Shifts in Investor Demand

BlackRock CEO Larry Fink described Bitcoin as an asset tied to fear and security concerns, noting that users buy it due to worries about personal and financial safety. He linked recent price changes to global tension. He said Bitcoin eased after early talk of a Ukraine settlement and after the U.S., China trade agreement reduced market stress.

Fink referred to fiscal deficits and what he called debasement of financial assets as long-term drivers of interest in Bitcoin. He noted that the asset has dropped about 20% to 25% three times since BlackRock launched its spot ETF, IBIT

The move from above $125,000 to below $90,000 was cited as an example of its sharp swings. He explained that traders need precise timing to navigate this behavior, but hedge users see volatility differently. He said those who view Bitcoin as protection may accept large swings if the asset balances broader portfolio risks.

IBIT Options Surge as Market Structure Evolves

Interest in crypto-linked derivatives has risen, and options tied to BlackRock’s IBIT have grown quickly. Data from optioncharts showed open interest at 7,901,926 contracts, placing the product among the top U.S. options markets

This level was reached within a year of the ETF’s launch. Fink said leveraged players still shape Bitcoin’s market, adding that this influence remains a core challenge. Yet he pointed to a shift in the holder base

He said “more legitimate long-only investors” are entering, and he named a foundation endowment and several sovereign funds that added positions across prices from the $120,000 area to the $80,000 range. Fink said his view changed after meeting crypto advocates during the pandemic. He called the change “a very glaring public example” of revising a strong opinion.

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