• BlackRock CEO Larry Fink outlined the most urgent and rapidly changing developments in crypto and traditional finance in his annual letter to investors.
• Fink discussed topics such as geopolitical crisis, strategies for long-term growth, digital assets, broader trends in investing and market research.
• He predicted that more bank seizures and shutdowns are coming due to inflation, Fed rates and bank bailouts, placing greater importance on capital markets for financing.
BlackRock CEO Outlines Crypto Developments
BlackRock CEO Larry Fink released his annual letter to investors outlining the most urgent and rapidly changing developments in both cryptocurrency and traditional finance. In the 9,000-word document, he discussed issues such as the geopolitical crisis, strategies for long-term growth, digital assets, broader trends in investing and market research.
Inflation & Federal Rates
Fink predicted that inflation will persist at a rate of 3.5% or 4%. Due to this elevated rate of inflation he believes that the Federal Reserve will continue to raise interest rates in order to fight it.
Bank Bailouts & Seizures
Due to the continued challenges facing regional banking sectors within the US, Fink predicts that more bank seizures will occur leading to potential bailouts from central banks. As these banks become constrained on lending they are likely to turn towards capital markets for financing instead of relying on banks themselves.
Implications Of Digital Assets
Fink also touched upon implications of digital assets being onboarded into financial institutions noting that there remain many challenges with this process but overall remains bullish on emerging economies when it comes to their use cases.
Long Term Growth Strategies
Finally Fink concluded his letter by discussing long term growth strategies noting that while 2020 witnessed one of the most challenging market environments due diligence must be done in order successfully capitalize on opportunities during times of uncertainty.