Blackrock CEO, Rick Rieder stated in his recent interview with SquawkBox that the reason he owns Bitcoin is because of his belief that volatile assets possess a positive convexity. Furthermore, he predicted against the current fall in BTC prices as a temporary short, and that he expects the prices to hike significantly in foreseeable future.
“Part of why I own a small piece of bitcoin is I do think there are more people who are going to enter that fray over time … I like volatile assets that have upside convexity. I could see bitcoin go up significantly.”, said Reider.
“Part of why I own a small piece of #bitcoin is I do think there are more people who are going to enter that fray over time … I like assets that are volatile that have upside convexity. I could see bitcoin go up significantly but I think it’s volatile,” @RickRieder #btc #crypto pic.twitter.com/nNxnhznrWe
— Squawk Box (@SquawkCNBC) September 9, 2021
However, Blackrock CEO has also highlighted cryptocurrencies, like Bitcoin cannot compete with core assets such as bonds and stocks. Nevertheless, Rieder thinks Bitcoin has the potential to provide a speculative tool in one’s portfolio that holds eminent value.
“But I think it’s volatile. I don’t think it’s a core asset class, like bonds or stocks. But I think it’s more of a speculative tool in the portfolio, and I think there’s some value to that.”, Reider added.
Bitcoin may see a hike because of Rieder’s remarks
Bitcoin has been battling to touch its former 50K mark since the Tuesday drop of over 20% in just an hour. Currently, BTC is trading between the support zone of $45K-$50K. However, Blackrock CEO’s latest comments on the crypto may push for another BTC shot from $44,161 to a new daily high of $47,348, experiencing a gain of over $3,000 in just a 24-hours timeframe, further recording a 3-month high above $48,000. This exceptional BTC hike was accredited to the series of pro-crypto announcements by financial giants including BlackRock and Wells Fargo.
BlackRock, the world’s largest asset manager announced that it held $382 million in Bitcoin mining stocks. This was followed by Wells Fargo’s private Bitcoin Fund registration. However, in the past both these organizations had been critical of Bitcoin, so a Bitcoin investment from them came as a surprise and resulted in an extraordinary market sentiment hike.