BlackRock CEO Larry Fink declared the crypto leverage washout that erased roughly $2 trillion from the market this year is finished, and Bitcoin is now showing 'more stability at these levels.' Fink made the remarks on CNBC on July 15, after his firm reported record second-quarter results.
Fink on CNBC: 'Leverage has been flushed'
Fink argued that global markets carry far less leverage today than in 2008-2009, but crypto was the glaring exception. That excess leverage has now been flushed out, he said. Fink didn't offer a Bitcoin price target, though he called himself 'very bullish' on markets broadly over the next 12 months, powered by a technological revolution in margins. He also predicted a futures market for computing power, calling the financing of AI infrastructure 'the next revolution in finance.'
ETF flows turn green after a brutal June
June was the worst month on record for US spot Bitcoin ETFs, with $4.5 billion in net outflows as bitcoin fell over 20%. Redemptions drained roughly $2.7 billion across ten straight sessions in late June. But the outflow streak ended on July 2 with a $221.7 million inflow. Since July 6, Glassnode data shows a steady run of green days, with daily inflows of $80 million to $260 million accompanying bitcoin's climb from under $58,000 to near $65,000 on July 15. BlackRock's own IBIT fund peaked near 823,000 BTC in mid-May, shed roughly 90,000 BTC by early July, and has since flattened around 730,000 BTC.
Record quarter for BlackRock
BlackRock reported record second-quarter results with $15.34 trillion in assets under management, driven by the iShares business that houses IBIT. The firm gives institutions formal Bitcoin allocation guidance of 1% to 2% of portfolios. Separately, BlackRock's fixed income chief Rick Rieder told Bloomberg that up to $9 trillion in sidelined cash could fuel a sharp rally. JPMorgan analysts described improving institutional demand in bitcoin futures as an encouraging sign. Bloomberg Intelligence ETF analyst Eric Balchunas argued that bitcoin ETFs may mirror the 22-year path of gold ETFs, with large gains, painful drawdowns, and rising high-water marks.
Bitcoin's recovery still fragile
Despite the optimism, bitcoin's price recovery has repeatedly stalled below $65,000 resistance, leaving it down about half from October's $126,000 peak. Analysts at crypto exchange Bitfinex warned that a renewed outflow shock could stall the rebound. The next few weeks will test whether Fink's call holds — or if the market needs another leg lower before the washout is truly over.
