Bitcoin is currently in the midst of what some experts say is the largest drawdown of its current bull market. Some might even argue that the bull market status has been shed in favor of the bear market designation. Labels aside, these are trying times for cryptocurrency investors as U.S. trade policy saps risk appetite from global markets.
It’s obvious tariffs are plaguing the broader cryptocurrency complex and ETFs like the CoinShares Valkyrie Bitcoin Fund (BRRR ). But some experts believe the recent tumble experienced by the largest digital currency could give way to a buying opportunity.
Of course, market-timing is difficult. That is to say bitcoin and ETFs like BRRR could have more downside ahead before rebounding in earnest. Additionally, the current market climate is stoking fear among investors. That potentially makes it difficult for them to see the bitcoin forest through the trees.
Fink Comments Could Be Impactful
Count BlackRock (BLK) CEO Larry Fink among the well-known market observers who is constructive about bitcoin. Sure, his company has skin in the game because it issues a product comparable to BRRR. But that doesn’t mean his views don’t hold merit.
In comments made at the New York Economic Club on Monday, Fink said it’s possible bitcoin retreats by another 20% — a scary proposition. But that decline could prove to be a buying opportunity for long-term investors. That’s because it wouldn’t be the result of systematic risk.
“I see it more as a buying opportunity than a selling opportunity. But that doesn’t mean we can’t go down further,” said Fink at the event.
The current market environment could also be an opportunity for bitcoin and ETFs like BRRR to prove their inflation-fighting mettle. That’s because, as Fink points out, inflation remains elevated. And that implies the Federal Reserve might not have the latitude to lower interest rates even if the economy contracts. It remains to be seen if those scenarios play out. But it is clear that Fink is long-term bullish on bitcoin.
“Last month, Fink published a letter to shareholders, warning about Bitcoin’s (BTC) threat to the U.S. dollar, which could weaken if Americans believe the cryptocurrency to be a safer asset than the dollar,” reported Helene Braun for CoinDesk. “Markets, including the crypto market, have been in turmoil since U.S. President Donald Trump announced a host of tariffs on goods imported to the U.S. BTC is currently trading 5% lower over the past five days and 11% lower in the past month. Stocks were hit even worse with the S&P 500 and Nasdaq down 13% and 15%, respectively.”
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