BlackRock CEO Fink: Crypto Leverage Washout Done, Bitcoin Stabilizing as ETF Inflows Return

BlackRock CEO Larry Fink asserts the crypto leverage washout is over, declaring Bitcoin shows "more stability at these levels." His comments follow BlackRock's record Q2 results, framing crypto's $2 trillion market slide as a necessary flush of excess risk.

Data backs Fink's call: US spot Bitcoin ETFs, after June's record $4.5 billion outflows, have seen a sharp reversal. A 10-day outflow streak ended July 2, replaced by consistent daily inflows of $80M-$260M since July 6, pushing Bitcoin from $58,000 to near $65,000.

BlackRock's IBIT holdings, after shedding 90,000 BTC from mid-May peaks, have flattened around 730,000 BTC. This suggests seller exhaustion, while JPMorgan analysts note improving institutional demand in Bitcoin futures. BlackRock's fixed income chief eyes up to $9 trillion in sidelined cash ready to deploy.

Despite the positive shift, Bitcoin faces a critical test at $65,000 resistance, a level it has repeatedly stalled below. Bloomberg Intelligence compares Bitcoin ETFs to gold's 22-year path, predicting large gains alongside painful drawdowns.

The immediate focus is whether daily inflows persist through the Federal Reserve's month-end rate decision. Sustained buying is needed to solidify Fink's stabilization thesis and confirm a durable market bottom.