BlackRock: Surge in U.S. Federal Deficit Boosts Bitcoin's Appeal as a Reserve Asset

ChainCatcher news, according to Benzinga, global asset management giant BlackRock has stated that interest in Bitcoin as a reserve asset is rising due to the U.S. federal debt reaching $35 trillion. BlackRock's ETF Chief Investment Officer Samara Cohen and Head of Digital Assets Robert Mitchnick pointed out that concerns over the spread of the U.S. federal deficit and debt issues are driving widespread institutional interest in Bitcoin. Bitcoin is seen as a "unique diversification tool" to hedge against fiscal, monetary, and geopolitical risks.

BlackRock's CEO Larry Fink has referred to Bitcoin as a hedge against inflation, especially in the context of rising global tensions and the threat of de-dollarization.