Fink Says Crypto Sell-Off Is Over, Bitcoin Gets Support

BlackRock says leverage pressure in crypto is easing, while U.S. spot Bitcoin ETFs are drawing inflows again. IBIT and Bitcoin’s move back toward $65,000 are adding support to the rebound.

Key Takeaways

• BlackRock CEO Larry Fink says the leverage-driven crypto sell-off is over and that Bitcoin is looking more stable now.
• U.S. spot Bitcoin ETFs have started seeing inflows again after a weak June, while Bitcoin has climbed back toward nearly $65,000.
• IBIT pulled in a large amount of capital again, but analysts say the recovery is still not fully confirmed.

BlackRock CEO Larry Fink says the leverage-fueled sell-off that hit crypto hard is now behind the market. He said Bitcoin is showing “more stability at these levels” after the market shed about $2 trillion (€1.8 trillion) in value this year. His comments came as inflows into U.S. spot Bitcoin ETFs turned positive again after their weakest month since launch.

Fink Points to Less Leverage

Fink made the remarks in a CNBC interview, where he was asked about leverage risk in South Korea’s stock market. He said global markets are carrying far less leverage than they did in 2008 and 2009, but crypto was the exception. In his view, that excess leverage has now been washed out.

The BlackRock CEO did not offer a Bitcoin price target. Instead, his broader “very bullish” view covers markets over the next 12 months and is tied to what he sees as a technological shift in margins. He also linked that outlook to AI infrastructure, which he said could become the next major step in finance.

ETF Flows Turn Around

The latest spot Bitcoin ETF data adds some support to his stability call. June was the worst month on record for U.S. spot Bitcoin ETFs, which saw $4.5 billion (€3.9 billion) in net outflows as Bitcoin dropped more than 20 percent. That was followed by ten straight trading days of outflows, before the streak ended on July 2 with a $221.7 million (€194 million) inflow.

Since July 6, Glassnode data has shown another string of positive days. Daily inflows ranging from $80 million (€70 million) to $260 million (€228 million) lined up with Bitcoin’s rebound from below $58,000 (€50,800) to nearly $65,000 (€56,900) on July 15. Also on July 15, spot Bitcoin ETFs recorded $108 million (€94.5 million) in inflows, according to the provided data, with $80.82 million (€70.7 million) going to BlackRock’s IBIT.

What This Means for Bitcoin

For European crypto readers, the main point is that the world’s largest Bitcoin ETF is attracting money again. IBIT has grown into one of the biggest Bitcoin funds in the world and now manages about $98.47 billion (€86.2 billion) in assets. That underscores how much institutional demand can still move the crypto market, even after a sharp pullback.

BlackRock also has a direct interest in seeing that stability continue. The company reported record second-quarter results, with $15.34 trillion (€13.4 trillion) in assets under management. Within that total, the iShares business, which includes IBIT, plays a highly visible role.

Even so, the rebound is not fully proven yet. Bitcoin has already struggled several times to hold above support near $65,000 (€56,900), and analysts at Bitfinex warned that another round of outflows could slow the recovery. The next few days, along with the Federal Reserve’s rate decision, should show whether the recent inflows can keep going. A similar tug-of-war between ETF inflows and price pressure also showed up during the recent stretch of weak demand, when weak ETF flows and lower open interest were already weighing on the recovery.