Rieder said that he owns a small amount of Bitcoin, so he believes that its price could soon go up significantly. The ban on mining in China and the subsequent drop and reallocation of the hash rate led BlackRock to invest in that activity.
The drop in the price of Bitcoin to USD 44,380 on September 7th has upset many users of the cryptocurrency ecosystem. There have been many opinions from analysts who expect a recovery for the cryptocurrency after testing the resistance level twice. However, one of the most relevant views seems to be that of Rick Rieder, CEO of investment management company BlackRock.
As that company and its competitors are shareholders in most large multinationals, its strategic advice is of particular interest. For that reason, Rieder’s opinion on the price of Bitcoin caught the attention of users of the cryptocurrency ecosystem.
A Significant Rise in the Price of Bitcoin Is Approaching
Rick Rieder recently explained that he has been very attentive to the behavior of that market since he owns a small amount of Bitcoin. Therefore, he believes that the price of the cryptocurrency could rise significantly.
The executive of the asset management company has done a lot of research on Bitcoin, which is why he described it as an alternative currency. Increasing adoption at the global and government level will likely dictate its future price movement. In addition, the case of El Salvador could give some support to his projections.
He explained that he had a small portion of Bitcoin because he believed more people would enter that fray eventually. He expressed that he likes volatile assets that have upward convexity. He further predicted that the price of Bitcoin would rise significantly, as it has done on many occasions.
Likewise, Rieder said that it is valuable to have some Bitcoin as a speculative tool. In August, BlackRock allocated more than USD 382 million to shares of Bitcoin mining companies Marathon Digital Holdings and Riot Blockchain.
The BlackRock Company is interested in Investing in Bitcoin
On June 30th, the US Securities and Exchange Commission (SEC) made a presentation on BlackRock. They showed that the company bought a significant amount of shares in Bitcoin mining companies that it now has in private funds.
The company has continuously expressed its interest in Bitcoin and its price. That represents a small sample of the influx of large traditionally conservative financial institutions approaching the cryptocurrency.
The investment from BlackRock in Bitcoin mining occurs due to the ban on the mining business in China. American mining companies began to benefit from that situation and the subsequent global drop and reallocation of hashing power.
A growing number of companies are aware of the relevance of Bitcoin to the global economic system. For that reason, many have ventured to invest in that asset to keep it as a store of value. Although the price of the pioneering cryptocurrency has fallen dramatically on many occasions, it has proved able to recover and exceed its all-time highs.
By Alexander Salazar