U.S. asset manager BlackRock (BLK) is forecasting a “historic year” for Bitcoin (BTC) and other crypto as president-elect Donald Trump returns to power.
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Samara Cohen, BlackRock’s chief investment officer for exchange-traded funds (ETFs), says crypto is likely to benefit from deregulation under the Trump administration. Cohen is responsible for BlackRock’s iShares Bitcoin Trust (IBIT), which is the largest spot Bitcoin ETF in America with $50 billion of assets.
The iShares Bitcoin Trust has gained 114% since its January 2024 debut, reflecting the rise in the price of BTC over the last year. Recently, BlackRock launched a version of its Bitcoin Trust in Canada. More spot Bitcoin ETFs are expected to be launched this year following Trump’s inauguration.
“Expect Volatility”
However, despite the expected gains ahead for Bitcoin and other cryptocurrencies, Cohen at BlackRock cautions investors to expect ongoing volatility with digital assets. “Bitcoin is a risky asset and investors should expect volatility,” she said in a recent TV interview.
While Bitcoin is currently trading at $102,000 and is up nearly 10% so far this year, it had been trading as low as $90,000 on January 13. The entire cryptocurrency market has proven to be volatile to start the new year, similar to the recent movements in stocks.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has risen 46% in the last 12 weeks.
