BlackRock CEO Larry Fink said the market could drop by an additional 20%, but said the current drawdown is a purchase opportunity in the long run, as the current situation does not pose a systematic risk.
“I think it's a more buying opportunity than an opportunity to sell it, but that doesn't mean we can't get any further down,” Fink said when he appeared at the New York Economic Club on Monday.
He pointed out that inflationary pressures are higher than market participants expect, and that many believe the US is already in a recession. As a result, he does not expect the Federal Reserve to cut interest rates this year.
Last month, Fink issued a letter to shareholders, warning about the threat of Bitcoin (BTC) against the US dollar. This can be weaker if Americans believe that cryptocurrency is a safer asset than the dollar.
Markets, including the crypto market, have been in turmoil since US President Donald Trump announced that he has traded numerous tariffs on goods imported into the United States 5% lower in the past five days and 11% lower in the past month. The stocks got even worse as the S&P 500 and Nasdaq fell 13% and 15% respectively.
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