BlackRock CEO Larry Fink Says Bitcoin Market Is More Stable After Leverage Reset

BlackRock CEO Larry Fink said he is no longer concerned about excessive leverage in the Bitcoin market, arguing that the cryptocurrency has become significantly more stable after speculative positions were largely eliminated.

Speaking to CNBC on Wednesday, Fink explained that leverage had been one of his biggest concerns regarding Bitcoin and the broader crypto market. He said the recent market reset has helped reduce those risks, creating a healthier environment for investors.

“I was always worried about the leverage in Bitcoin and crypto,” Fink said, adding that the market “had to wash out” before reaching a more stable footing. According to the BlackRock chief, the current market structure appears stronger following the correction.

While discussing Bitcoin, Fink spent much of the interview highlighting the growing impact of artificial intelligence on businesses and financial markets. He said AI is driving significant productivity gains and expects technological innovation to boost corporate earnings over the next year.

Fink said he remains highly optimistic about the outlook for financial markets, predicting that AI-powered efficiency improvements will continue expanding profit margins across multiple industries. He noted that BlackRock itself has benefited from adopting advanced technology, with the firm's operating margins improving by roughly 260 basis points over the past 12 months.

He added that artificial intelligence is helping BlackRock process more trades and streamline a wide range of operational activities, making the company more efficient while supporting long-term growth.

Fink’s comments also reflect his dramatic shift in attitude toward Bitcoin over the past several years. In 2017, he famously described Bitcoin as an “index of money laundering.” However, his stance changed significantly in 2023 when BlackRock filed for its spot Bitcoin exchange-traded fund (ETF), which later became the industry's largest.

Since then, Fink has repeatedly characterized Bitcoin as an international asset, a potential hedge against currency debasement, and “digital gold.” He has also argued that Bitcoin can serve as a valuable portfolio diversifier, reinforcing BlackRock’s growing commitment to digital assets as institutional adoption continues to expand.