BlackRock CEO Issues An ‘Urgent’ $34 Trillion Warning That Could Trigger A Bitcoin Price Earthquake

has soared to a fresh all-time high this month in a rally that’s sparked fears the Biden administration could be quietly plotting to “kill” crypto.

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The bitcoin price has surged 350% since crashing to a recent low of $15,000 per bitcoin in the aftermath of the FTX crypto exchange collapse, a bounce back that’s been put down to a growing Wall Street game-changer.

Now, after Donald Trump made a shock bitcoin flip, the chief executive of the world’s largest asset manager BlackRock
has issued an “urgent” warning over the growing $34 trillion U.S. debt pile—which some think has become a “powerful” bitcoin price driver.

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“The situation is more urgent than I can ever remember,” Fink, who led BlackRock in successful bid to bring a spot bitcoin exchange-traded fund (ETF) to Wall Street this year after 10 years of rebuffs, wrote in his annual letter to investors.

U.S. debt has recently hit $34 trillion thanks to the Covid pandemic, lockdowns and huge stimulus spending and will add another $1 trillion every 100 days, according to Bank of America analysts who predicted bitcoin is set for a “blowout year” as a result.

Covid stimulus measures and supply chain shocks sent inflation spiraling out of control in 2022, which The Black Swan author Nassim Taleb warned could create a “death spiral” for the U.S. dollar which the Federal Reserve is unable to prevent.

“A high-debt America would also be one where it’s much harder to fight inflation, since monetary policymakers could not raise rates without dramatically adding to an already unsustainable debt-servicing bill,” Fink said.

BlackRock’s Fink joins other Wall Street chief executives including JPMorgan’s Jamie Dimon and Bank of America’s Brian Moynihan and even Fed chair Jerome Powell in warning over the U.S. debt pile.

In February, Powell warned U.S. debt is “growing faster than the economy,” and the U.S. is “borrowing from future generations.”

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This week, Michael Novogratz, the chief executive of bitcoin and crypto financial services company Galaxy Digital, predicted the bitcoin price and wider crypto market will benefit from spiraling U.S. debt.

“There’s one number I think that you should keep on your refrigerators, $34 trillion of debt, and in 100 days, it’ll be $35 trillion, and in 200 days, it’ll be $36 trillion, and until the United States, and other countries, get their finances in order, the story for bitcoin and other digital assets is going to continue to grow,” Novogratz said during the company’s earnings call this week. “The [bitcoin] story is powerful right now.”

Galaxy Digital has doubled its assets under management over the last year and posted a profit of $300 million, up from $1 billion loss in 2022.

In February, legendary investor Jim Rogers warned the massive $34 trillion U.S. debt pile means a looming recession will be “the worst in [his] lifetime.”

Last year, Jefferies’ analysts predicted the U.S. Federal Reserve will be forced to restart its money printer in 2024 due to a steep economic down turn, potentially collapsing the U.S. dollar and fueling a bitcoin price boom to rival gold.

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