The biggest asset manager in the world bought over 10 figures worth of Bitcoin (BTC) last week, according to blockchain “de-anonymizing” firm Arkham.
According to Arkham’s on-chain data, BlackRock bought over a billion dollars’ worth of BTC last week, in a sign that institutions are back to being bullish on the flagship cryptocurrency.
Rick Rieder, BlackRock’s chief investment officer (CIO) of global fixed income, says the US is entering a different “economic paradigm” centered on productivity, which he thinks will present a downside risk to labor markets, an upside influence on growth and a downside pressure on inflation.
“The fact is that productivity, technology, and innovation are changing the historic calculus of growth versus employment in the United States today, and productivity is taking a front seat.
For example, we think artificial intelligence and automation may be enabling companies to deliver stronger performance while maintaining a stable workforce, which reflects significant efficiency gains and marks the beginning of a new era in workforce productivity.”
In a recent interview with CNBC, Rieder said several factors make the current market favorable for investors.
“It doesn’t mean necessarily everything’s going up, but there’s a couple things at play that are pretty extraordinary. First of all, technicals on equities are crazy, the amount of cash on the sidelines, the amount of buybacks relative to the IPO (initial public offering) calendar, i.e. the demand versus supply, is pretty extraordinary…
I looked at 2024 – if you strip out Tesla for obvious reasons – Mag 7 year-on-year growth is like 54%…
Then you take the other side of it, you have a fixed income. I think the Fed can cut rates, but until then you got yield levels, you can create portfolio 6.5%-7% yield. That’s pretty good.
I would throw out [one] last thing… [there’s] low volatility to own equities – so you don’t actually have to take the downside risk. That’s a pretty good environment.”
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