BlackRock, the world’s largest investment asset manager, has once again come out in defense of the largest Cryptocurrency. In a recent report, the firm claims that Bitcoin will reach $1 trillion in market capitalization. It also highlights the enormous profitability of the digital currency over the past few years.
In the report, called Bitcoin: A Unique Diversifier, the firm highlights some of the most important qualities of the digital currency. It also highlights the rapid adoption it enjoys among investors of all sizes. Thus, although it highlights the risks associated with volatility, it also highlights the high capacity to recover from downward cycles.
The paper puts special emphasis on BTC’s performance over the past decade. In this regard, it highlights that the currency outperformed the rest of the major assets in 7 of the last 10 years. Meanwhile, it suffered 3 drops of more than 50% and from which it recovered at an outstanding speed.
They add that this is a unique quality to which we must add the fact that the path of this token is just beginning. All these elements generate a dynamic in which the market capitalization of Bitcoin will reach $1 trillion dollars.
Is it possible for Bitcoin’s market cap to reach $1 trillion?
For BlackRock, Bitcoin’s potential knows no bounds thanks to accelerated adoption. Simply put, more and more people understand the dynamics of Bitcoin and express their interest in investing in the token. This reality allows us to understand that the currency is slowly reaching an ideal status of maturity. The presence of the digital currency on the stock exchange represents one of the greatest achievements that will mark the future of BTC.
In 2022 alone, the currency suffered a terrible fall during the so-called winter. However, this did not discourage capital, which returned to invest in BTC in a short period of time. For BlackRock, there are few assets that enjoy this level of confidence among its investors.
As for the nature of the currency, they point out that it makes it a store of value and a global payment system at the same time. Its evolution indicates that “it will be widely adopted as a global monetary alternative,” they point out.
Finally, the firm highlights that Bitcoin’s rise occurs amid strong international financial instability. In the midst of such a scenario, the pioneering cryptocurrency shows a high performance capacity that generates confidence. With all this, it can be assumed that Bitcoin will reach $1 trillion in capitalization, according to the firm.
Bitcoin’s long-term chart demonstrates its enormous ability to recover after bearish cycles. Source: BlackRock
BlackRock’s relationship with BTC
BlackRock, as mentioned above, is the largest investment asset manager in the world. Its AUM amounts to $10 trillion, making it a key player in international financial stability. Its CEO, Larry Fink, is a strong supporter of cryptocurrencies.
In fact, during his continuous appearances in the media he never misses an opportunity to highlight the qualities of Bitcoin.
“Bitcoin is going to transcend any currency” and “Everyone needs to consider it as an alternative,” are some of Fink’s statements.
It is worth noting that BlackRock is the issuer of the largest Bitcoin spot exchange-traded fund (ETF). The enthusiasm of this giant firm becomes a huge endorsement for BTC and its investors.
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