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BlackRock CEO Warns of Bitcoin’s Leverage Risks
BlackRock CEO Larry Fink at the New York Times DealBook Summit warned that Bitcoin's volatility, exacerbated by leverage, poses systemic risks. He highlighted the outsized role leveraged investors play in its price swings, citing recent price action where Bitcoin dropped from $125,000 to below $90,000. Fink noted that sovereign wealth funds have added to their Bitcoin positions during declines, suggesting a growing base of long-term holders. He also pointed out that the fiscal backdrop, with US national debt reaching $40 trillion, keeps the argument for Bitcoin as a hedge against things going wrong alive.