Bitcoin is rallying alongside tech stocks entering a potential price surge towards $100,000, as analysts predict a long-term decline in the U.S. dollar, linked to new trade policies and geopolitical shifts. BlackRock’s Jay Jacobs highlights Bitcoin’s rise amid instability, declaring its decoupling from tech stocks, while CEO Larry Fink positions BlackRock at the forefront of cryptocurrency innovation with new ETFs and plans beyond the dollar.
This week Bitcoin is making multiple headlines as it rebounds alongside tech stocks, which quite closely followed speculation of a significant warning regarding the U.S. dollar by Federal Reserve officials. Reports indicate there’s growing anxiety about potential risks of crypto “contagion.” This comes at a crucial time when Bitcoin approaches the $100,000 mark, with a noted investor announcing a call for buying, claiming that a market bottom is near amid possible changes from the Federal Reserve.
A huge point of discussion is from the Deutsche Bank analysts George Saravelos and Tim Baker. They recently released a note stating that the conditions are ripe for a prolonged downtrend of the dollar due to anticipated shifts in U.S. trade policy and how global perspectives on U.S. geopolitical power are changing. This follows Fed chair Jerome Powell’s hawkish stance on interest rates, even with President Trump pushing for cuts.
In their analysis, Saravelos and Baker highlight that the dollar is likely facing a long-term decline, suggesting that the environment is fraught with uncertainties and potential market dislocations. Their views parallel remarks from Goldman Sachs’ FX head, who voiced concerns about the prolonged weakness of the dollar in light of Trump’s new tariff policies.
In an interesting twist, BlackRock’s head of themed ETFs, Jay Jacobs, has signalled a relationship between geopolitical fragmentation and Bitcoin’s rise. He noted that increasing global instability is likely pushing investors towards alternative assets like Bitcoin. Jacobs mentioned that Bitcoin appears to be decoupling from technology stocks, thus behaving more as an uncorrelated asset ideally should.
BlackRock, which has over $10 trillion in assets under management, has significantly influenced the Bitcoin landscape. Their strategy included initiating a fully operational spot Bitcoin ETF in the U.S., which saw fruitful results last January. CEO Larry Fink has even shifted his viewpoint on Bitcoin, now acknowledging it as “digital gold” rather than a tool for illicit activities—calling it a legitimate addition to the financial toolset.
Fink’s earlier dismissive attitude towards Bitcoin is now transformed into an ambition, suggesting that a digital “revolution” is on the horizon. The emergence of spot Bitcoin ETFs was just the beginning, as he discusses aspirations for a blockchain-based alternative to the traditional U.S. dollar.
