Reports have disclosed a sharp rebound in crypto markets this week, with Bitcoin jumping 8% to trade above $93,000 after sliding from lows under $85,000 earlier in the week.

Traders are watching the Federal Reserve’s December actions closely as they try to gauge how much liquidity will return to markets. The move pushed bitcoin back within reach of a roughly $2 trillion market cap.

Sovereign Funds Building Longer Positions

According to BlackRock chief executive Larry Fink, several sovereign wealth funds have been quietly adding to positions as prices fell from a peak near $126,000.

“There are a number of sovereign funds that are standing by…. and they’re buying ‘incrementally’ as the Bitcoin price has retreated from its $126,000 peak,” Fink said.

He said these buyers are taking a gradual approach — adding over time rather than making quick bets — and treating holdings as multi-year positions.

Reports have disclosed that public funds in Abu Dhabi and Luxembourg have bought into BlackRock’s IBIT bitcoin fund in recent months.

Fink warned that markets remain skewed and that volatility will persist while many players remain highly leveraged.

Tokenization Seen As A Long-Term Story

Fink has been vocal about tokenization as a major theme for the coming years. Based on reports, he wrote in The Economist that tokenization could grow as quickly as the internet did in its early days, noting that Amazon had only $16 million in sales in 1996.

BlackRock, the $10 trillion asset manager he runs, has pushed the idea that a digital wallet could one day hold stocks, bonds and tokenized assets together.

Coinbase chief executive Brian Armstrong said some of the largest banks are already working with Coinbase on stablecoins, custody and trading services, though he did not name the banks.

On Ownership & Worry

According to remarks made at a DealBook event alongside Andrew Ross Sorkin and Brian Armstrong, Fink described bitcoin in emotional terms: ownership often reflects worries about physical safety or financial security.

He tied demand to concerns over the debasement of financial assets and rising deficits. Reports have also quoted him warning that the US risks falling behind other governments if it does not speed up adoption of tokenization and other digital tools.

US President Donald Trump has similarly warned about competition from China in crypto innovation.

Market Reaction And Risks Ahead

Traders are already pricing in a variety of scenarios. Some are betting on a major development in 2026 that could reshape demand; others remain focused on short-term policy moves from the Fed.

Bitcoin’s recent 8% gain was the largest daily jump since May, but it came after sharp swings that highlighted how quickly positions can reverse.

With significant capital now involved — and big names publicly backing tokenization — the market is likely to see more headline-driven moves.

Featured image from Pexels, chart from TradingView

BlackRock chairman and CEO Larry Fink has framed Bitcoin’s latest boom-and-bust swing as the clearest expression yet of its core narrative: not a growth asset, but “an asset of fear.”

Speaking at the New York Times’ DealBook “Crypto and Capital” event alongside Coinbase CEO Brian Armstrong, Fink contrasted the $13.5 trillion BlackRock manages with the motivations behind Bitcoin demand. BlackRock’s portfolios, he said, are essentially “managing hope” over decades: “The $13.5 trillion that BlackRock managed on behalf of our clients, it’s basically managing hope. That’s all it is. I mean, why would anybody invest in a 30-year outcome unless you’re hopeful that in 30 years you’re going to have the compounding effect.”

Why Bitcoin Is ‘An Asset Of Fear’

Bitcoin, by contrast, he placed on the opposite side of the psychological ledger. “Bitcoin is an asset of fear,” Fink said. “You own Bitcoin because you’re frightened of your physical security. You own it because you’re frightened of your financial security. The long-term fundamental reason you own it [is] because of debasement of financial assets because of deficits.”

His comments came against the backdrop of a sharp reversal in the Bitcoin market. The asset hit an all-time high above $125,000 in early October 2025 before sliding nearly 30% and briefly dropping below $90,000 in mid-November. Fink explicitly referenced that move to illustrate just how violent the swings can be. “If you had bought it at $125,000 and it’s now sitting at $90,000,” he said, anyone treating it as a trade is dealing with “a very volatile asset” and “you’re going to have to be really good at market timing, which most people aren’t.”

For investors using Bitcoin as a macro hedge, he argued, the volatility looks different. “If you’re buying it as a hedge against all your hope, you know, then it has a meaningful impact on a portfolio.” In his telling, Bitcoin rallies when fear rises and retreats when fear subsides, citing episodes such as a US–China trade agreement or talk of a possible Ukraine settlement, after which Bitcoin “fell a little bit.” The pattern, he suggested, is consistent with a fear-driven hedge against geopolitical risk and fiscal slippage.

Fink also underscored that structurally, the market remains fragile. “The other big problem of Bitcoin is it is still heavily influenced by leveraged players,” he said, linking the asset’s outsized volatility to leverage even as flows through his firm’s spot ETF channel normalize.

Since launching IBIT, BlackRock has already lived through several drawdowns on the order of 20–25%, he noted, yet the holder base is shifting. “We’re seeing more and more legitimate long-only investors investing in it,” he said, citing a large foundation endowment and adding that “a number of sovereign funds” are “adding incrementally at $120k, at $100k,” and “bought more in the $80k’s.” For those allocators, he stressed, “this is not a trade. You own it over years. This is not a trade. You own it for a purpose.”

The stance marks a striking reversal from Fink’s 2017 description of Bitcoin as an “index for money laundering… and thieves.” He told the audience that during the pandemic he “took it upon myself to visit and talk to a lot of people who were advocates of it,” asking, “What am I missing?” and that “around 2021–22” he began to “evolve those views.” It is, he conceded, “a very glaring public example of a big shift in my opinion,” adding, “I have very strong views but that doesn’t mean I’m not wrong.”

At press time, Bitcoin traded at $93,107.

Bitcoin Magazine

BlackRock CEO Larry Fink Says He Was Wrong About Bitcoin, Reveals a ‘Big Shift’ in His View

BlackRock CEO Larry Fink has shifted his perspective on Bitcoin — and he openly acknowledged the change.

Speaking at the NYT DealBook Summit on Wednesday, Fink stated that he now sees potential in Bitcoin. Fink was once a vocal critic who famously labeled Bitcoin “an index for money laundering,” 

Today, Fink described Bitcoin as “an asset of fear,” elaborating that investors frequently purchase it in response to concerns about financial security, geopolitical instability, or the ongoing debasement of traditional assets caused by growing deficits.

“If you bought it for a trade, it’s a very volatile asset, you’re going to have to be really good at market timing, which most people aren’t,” Fink said. “If you’re buying it as a hedge against all your hope, then it has a meaningful impact on a portfolio… the other big problem of Bitcoin is it is still heavily influenced by leveraged players.”

Fink, speaking alongside Coinbase CEO Brian Armstrong, noted that market movements — like a recent 20–25% drawdown in Bitcoin — often reflect broader events, such as trade agreements with China or potential settlements in Ukraine. 

Despite all this, Fink still suggested it can serve as meaningful portfolio insurance for those holding it as a hedge rather than for short-term trading.

Fink emphasized that his perspective has evolved through years of client interactions and discussions with policymakers, calling his change of heart a “very glaring public example” of the need to reassess strong opinions. 

Meanwhile, BlackRock, the $13.5 trillion asset manager Fink helped build, now offers several crypto products, including a major Bitcoin ETF, marking a stark contrast to his earlier skepticism.

“There is no chance” that Bitcoin goes to zero, said Mr. Armstrong, who sat beside Fink. Fink also shared an optimistic view for the asset: “I see a big, large use case for Bitcoin,” he said.

JUST IN: BlackRock CEO Larry Fink says he was wrong to be a Bitcoin critic and changed his views

"My thought process always evolves. This is a big shift in my opinion." pic.twitter.com/4PhDuoy5Le

— Bitcoin Magazine (@BitcoinMagazine) December 3, 2025

BlackRock’s bold embrace of bitcoin and crypto

Back in October, BlackRock said they were developing technology to tokenize a wide range of assets, including real estate, equities, and bonds.

Fink said at the time that global digital wallets held over $4.5 trillion across crypto, stablecoins, and tokenized assets. He noted much of this capital was outside the U.S., presenting opportunities to reach new investors. 

Fink said tokenization could allow crypto entrants to access traditional long-term products, like retirement funds. He described Bitcoin and crypto as serving a similar purpose to gold. 

This post BlackRock CEO Larry Fink Says He Was Wrong About Bitcoin, Reveals a ‘Big Shift’ in His View first appeared on Bitcoin Magazine and is written by Micah Zimmerman.