BlackRock CEO Predicts Bitcoin’s Rise to $700,000 Amid Growing Demand

BlackRock CEO Larry Fink has reiterated his confidence in Bitcoin, projecting the cryptocurrency could reach $700,000 as institutional adoption and market fundamentals strengthen.

Fink’s bold forecast comes amidst record-breaking metrics for Bitcoin, including an all-time high for its Realized Cap and renewed interest from the ETF market. However, cautionary warnings from CryptoQuant CEO Ki Young Ju highlight the potential risks of a short-term pullback, creating a balanced yet uncertain outlook for traders.

BlackRock CEO’s Optimism Combines With Bitcoin’s Realized Cap Hits Record $832 Billion

The Realized Cap of Bitcoin, a metric that assesses the market worth of BTC based on the last trading price, soared to $832 billion, as data from Glassnode shows.

This figure has been rising by $38.6 billion monthly and the demand has not been affected by the low capital inflows since Bitcoin surged past the $100,000 mark.

The sell-side pressure has sharply reduced and the realized profit-taking has declined from $4.5 billion in December 2024 to $316.7 million. Such a sharp 93% fall indicates a more sustainable situation in the market, with supply and demand parameters becoming more balanced in the last few months. Investors seem to be more willing to keep their capital, which matches the generally positive outlook for the long-term Bitcoin.

Furthermore, the Bitcoin ETF market has bounced back after a week of outflows. Bitcoin ETFs sustained $1.21 billion in net outflows. But this changed on January 15, when the flows stood at $3.26 billion, and on January 17, the daily flows reached $1 billion, which was the highest daily flow of the year.

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CryptoQuant CEO Has Cautions of Possibility of Pullback

However, CryptoQuant CEO Ki Young Ju has come out to caution investors on possible market reversals. In his latest tweet, Ju indicated the MACD of the PnL Index, which is at a critical juncture, as seen in the chart. In the past, this indicator has warned of trends such as pullback and consolidation in the market.

Ju told the traders to be careful especially those who are involved in leveraged trading. “The current upward movement may be close to exhaustion,” he said. Ju stressed that minor market corrections may lead to big scale liquidations, increasing volatility and potential threats to leveraged positions.

Ju also mentioned that trading with leverage in a volatile market is risky. They are handicapped by high levels of leverage given the fact that any movement that does not meet the margin requirements exposes the trader to liquidation risks. In his view, mass liquidations can lead to amplified price fluctuations, which in turn lead to more selling pressures.

“People buy the highs and use high leverage and that is why they get margin calls and liquidations when the market goes down,” Ju said. According to him, the traders should reduce or even close the margin positions to avoid possible losses in the case of a pullback.

Long-Term Optimism Amid Short-Term Risks

However, as long as people are more cautious in the short-term than they are optimistic in the long-term, the price of Bitcoin can only go up. Larry Fink, the CEO of BlackRock, one of the world’s largest asset management firms, said that more institutions will embrace Bitcoin and the cryptocurrency may hit $700,000.

BlackRock CEO Larry Fink on Bitcoin:

“If everyone adopted a 2% or 5% allocation, you could see Bitcoin at $700,000”

Incredible how far Bitcoin has come. 🟠 pic.twitter.com/psxP3aq4WI

— Geiger Capital (@Geiger_Capital) January 22, 2025

Other analysts share similar optimism. CryptoBatman pointed to Bitcoin’s position on the Days-to-Halving Heatmap which implies that the market is still very much away from the cycle tops. In his forecast, Michaël van de Poppe estimated that the whole cryptocurrency market might reach $15 to $25 trillion due to the increasing use in different industries.