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BlackRock CEO issues ‘massive’ warning after crypto reversal sends Bitcoin, Ethereum and XRP prices soaring
Updated 7/16 below. This article was originally published on July 14
US Treasury Secretary Janet Yellen has warned that countries around the world are moving away from the US dollar.as spiralling US debt of $34 trillion fuels fears of collapse—with bitcoin and cryptocurrencies gradually eating away at the dollar’s dominance.
The price of bitcoin has skyrocketed over the past year, up despite ‘critical’ warning from Federal Reserveand helped by punters who are Former US President Donald Trump is increasingly confident he can retake the White House in November.
NOW, as Project 2025’s radical policy plan puts bitcoin on collision course with goldYellen said she fears U.S. financial sanctions could reduce the dollar’s role in the world as Russia encourages the use of bitcoin and cryptocurrencies.
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US Treasury Secretary Janet Yellen has warned that the dominance of the US dollar will continue to decline as… [+] Russia turns to bitcoin and cryptocurrencies despite price fluctuations.
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“We have very powerful sanctions, which are available because of the important role of the dollar in international transactions,” Yellen said. said U.S. lawmakers sitting on the House Financial Services Committee this week.
“The more we have used sanctions, the more countries have looked for ways to engage in financial transactions that do not involve the dollar.”
Update 7/16: BlackRock CEO Larry Fink, whose embrace of cryptocurrencies last year spearheaded the successful push to bring bitcoin cash exchange-traded funds (ETFs) to Wall Street, has warned about the pace at which U.S. debt is growing.
“We are putting a real burden on our children with these colossal expenses that we cannot afford,” Fink said. said CNBC is calling on the United States and countries around the world to shift toward economic growth. “The U.S. deficit is the largest in the world, it’s growing at the fastest rate in the world, and we need to find ways to minimize the role of the deficit on the economy. Government deficits are simply growing too fast as a percentage of GDP.”
Earlier this year, Bank of America analysts warned that U.S. debt was on track to increase by $1 trillion every 100 days.fueling a surge in the price of bitcoin.
“The U.S. national debt is increasing by $1 trillion every 100 days,” Michael Hartnett, chief strategist at Bank of America, wrote in a note to clients, adding that it is “no wonder that ‘debt depreciation’ is a concern.” [are] “approaching historic highs.”
Last month, analysts at BlackRock, the world’s largest asset manager, warned that an “unprecedented” scenario is unfolding that could affect the price of bitcoin and the cryptocurrency market as the Federal Reserve and central banks “are forced to keep interest rates higher than before the pandemic to address persistent inflationary pressures.”
Fink also admitted he was wrong about bitcoin and called it a “legitimate” financial instrument after calling bitcoin “an indicator of money laundering” in 2017.
“It’s a legitimate financial instrument that perhaps provides uncorrelated returns,” Fink told CNBC. “I think it’s an instrument that you invest in when you’re more fearful, but it’s an instrument when you think countries are depreciating their currencies because of excessive deficits, and some countries are.”
BlackRock’s embrace of bitcoin is widely credited with fueling the price of bitcoin and the cryptocurrency market’s rally over the past year, with a fleet of spot bitcoin ETFs exploding on Wall Street in January and led by BlackRock’s IBIT bitcoin fund.
In recent years, the United States has targeted Russia and Iran with tough financial sanctions, leading to accusations that they are instrumentalizing the dollar and alienating the BRICS group of emerging countries from the Western financial system.
The BRICS, initially made up of Brazil, Russia, India and China before being joined by South Africa, then Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE).
iShares MSCI UAE Capped ETF
), are major developing countries that have formed an alliance to increase their power and influence on the world stage.
The U.S.-led Western financial sanctions “will have a certain impact on the international status of the U.S. dollar,” said Zhao Qingming, a Beijing-based financial expert. said According to China’s Global Times newspaper, “in the short term, the position of the US dollar is expected to remain stable, but over time, its position may weaken.”
Earlier this month, Russia’s central bank encouraged the use of bitcoin and cryptocurrencies to counter Western sanctions imposed over the conflict in Ukraine.
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ForbesProject 2025 Prepared Bitcoin for a $16 Trillion Price Showdown with GoldBy
The price of bitcoin has seen wild swings in recent years, bouncing back and forth as fears swirl about the future of the… [+] US Dollar.
Forbes Digital Assets
“New financial technologies create opportunities for systems that did not exist before. That is why we have softened our position on the use of cryptocurrencies in international payments, allowing the use of digital assets in such payments,” said Elvira Nabiullina, Governor of the Central Bank of Russia. apparently said at a financial conference in St. Petersburg.
Fresh fears of a collapse in the US dollar come as some bitcoin and cryptocurrency traders bet that the price of bitcoin will hit a record high ahead of the US elections in November.
In a note dated July 2 seen According to The Block, Geoffrey Kendrick, head of forex and cryptocurrency research at Standard Chartered, “a new all-time high for bitcoin in August is likely, then $100,000 by US Election Day,” adding: “The logic here is that both regulation and mining would be viewed more favorably under Trump.”
Kendrick said he expects to see the price of bitcoin reach $150,000 by the end of 2024 and $200,000 by the end of 2025, which would give bitcoin a market capitalization of about $4 trillion.
Trump has emerged as the Bitcoin and crypto community’s favorite candidate, promising to protect people’s right to hold bitcoin and being announced as a keynote speaker at the Bitcoin 2024 conference later this month, putting him at stark odds with the Biden administration’s anti-crypto stance.