TLDR

• BlackRock CEO Larry Fink warns markets could drop another 20% but views current downturn as long-term buying opportunity
• Fink believes the US may already be in recession with most CEOs he speaks to sharing this view
• He doesn’t expect Fed interest rate cuts this year due to persistent inflation concerns
• Bitcoin has dropped below $80k, down 5% over five days and 11% over the past month
• Fink previously expressed concern about Bitcoin potentially undermining the US dollar

BlackRock CEO Larry Fink has warned that markets could experience an additional 20% drop amid ongoing economic concerns but maintains that current conditions represent a buying opportunity for long-term investors.

Speaking at the Economic Club of New York on Monday, Fink shared his outlook on market conditions following recent volatility triggered by President Donald Trump’s tariff announcements.

“I see it more as a buying opportunity than a selling opportunity, but that doesn’t mean we can’t go down further,” Fink said during his appearance. He added that he “would not be taking money off the table right now” and described current prices as “a great entry level” for investors.

The market downturn began after President Trump announced new tariffs on goods imported to the United States. The announcement has sent shockwaves through both traditional and cryptocurrency markets.

Recession Concerns Growing

Fink revealed that recession fears are mounting among business leaders. “Most CEOs I talk to would say we are probably in a recession right now,” he stated.

The BlackRock chief noted that market declines are already having real-world effects. “The reality is 62% of Americans now invest in equities — the market impact is impacting Main Street,” he said.

He warned that economic turmoil “is going to freeze more and more consumption, I think we’re going to start seeing that really quickly.” This consumer spending slowdown could further exacerbate economic challenges.

Fink believes that despite these concerns, the current market situation doesn’t pose systematic risk to the financial system. This suggests he sees the downturn as part of normal market cycles rather than a potential financial crisis.

Inflation and Interest Rate Outlook

According to Fink, inflationary pressures remain higher than market participants expect. This persistent inflation has important implications for Federal Reserve policy.

Fink stated that he does not anticipate the Federal Reserve cutting interest rates this year. This contradicts previous market expectations that called for multiple rate cuts in 2025.

“I see no chance the Federal Reserve will cut interest rates four or five times this year given the inflation outlook,”

Fink explained. His view suggests that investors hoping for monetary policy relief may need to adjust their expectations.

The combination of high inflation, possible recession, and maintained high interest rates creates a challenging economic environment for both businesses and consumers.

Crypto Market Impact

Cryptocurrency markets have not been immune to the broader financial turbulence. Bitcoin is currently trading around $78,000, down approximately 5% over the past five days and 11% lower over the past month.

Traditional markets have fared even worse, with the S&P 500 down 13% and Nasdaq falling 15% during recent trading. The S&P 500 is approaching a 20% drop from its February high, which would officially mark a bear market.

Last month, Fink published a letter to shareholders that highlighted concerns about Bitcoin’s potential impact on the US dollar. He warned that the dollar could weaken if Americans come to view cryptocurrency as a safer store of value.

Bitcoin briefly rallied above $81,000 during a recent trading session following what turned out to be false reports about a potential 90-day pause on tariffs. Prices quickly retreated when the information was revealed to be inaccurate.

Fink’s company, BlackRock, has become increasingly involved in the cryptocurrency space through its spot Bitcoin ETF offerings, making his comments on the sector particularly noteworthy for crypto investors.

Market volatility has been further fueled by President Trump’s additional threat of a 50% tariff on Chinese imports, which came after his initial tariff announcements last week.

Despite the challenging outlook, Fink suggested that the Trump administration could offset slowing consumption by pursuing deregulation and pro-growth policies, including potentially allowing mergers among large banks.

When asked about BlackRock’s succession plans, Fink mentioned he is ready to step down and retain his chairman role for a short period when the next generation of leaders is prepared. “They think they are not ready yet,” he noted.

Fink also addressed BlackRock’s deal with Hong Kong-based CK Hutchison for control of ports near the Panama Canal, saying regulatory review could take nine more months but expressing optimism it would eventually be approved.