BlackRock’s Larry Fink Says Crypto Washout Is Over: Is Bitcoin Stabilizing?

BlackRock CEO Larry Fink says the leverage washout that crashed crypto markets is over. Bitcoin (BTC) now shows “more stability at these levels,” he told CNBC on July 15.

Fink spoke after BlackRock reported record second-quarter results. Days later, US spot Bitcoin exchange-traded fund (ETF) flows turned positive after their worst month since the products launched.

What Larry Fink Said About Bitcoin and Leverage

Fink made the comments while answering a question about leverage risk in South Korea’s stock market. He argued that global markets carry far less leverage today than in 2008 and 2009.

Crypto, in his view, was the exception. That excess has now been flushed out, he said, in the selloff that erased roughly $2 trillion from the market this year.

“I was always worried about the leverage in Bitcoin and crypto. There was too much leveraged players in it. That’s why we had to wash out. And I think there’s more stability at these levels here.”

One clarification matters here. Fink offered no Bitcoin price target. His “very bullish” call covers markets broadly over the next 12 months, powered by what he called a technological revolution in margins.

Crypto still sits inside that thesis. Fink also predicted a futures market for computing power, calling the financing of AI infrastructure “the next revolution in finance.” The firm already gives institutions formal Bitcoin allocation guidance of 1% to 2% of portfolios.

ETF Flows Hint the Washout Has Run Its Course

The flow data gives Fink’s stability claim some backing. June was the worst month on record for US spot Bitcoin ETFs, with $4.5 billion in net outflows as bitcoin fell over 20%.

Redemptions then drained roughly $2.7 billion across ten straight sessions in late June. That 10-day outflow streak ended on July 2 with a $221.7 million inflow.

Since July 6, Glassnode data shows a steady run of green days. Daily inflows of $80 million to $260 million have accompanied bitcoin’s climb from under $58,000 to near $65,000 on July 15.

BlackRock’s own fund tells the same story in coins. IBIT’s holdings peaked near 823,000 BTC in mid-May, then shed roughly 90,000 BTC by early July as investors redeemed. Holdings have since flattened around 730,000 BTC, even as ETF trading volumes collapsed to cycle lows days earlier.

Fink’s optimism is not disinterested, however. BlackRock’s record second-quarter results showed $15.34 trillion in assets under management, driven by the iShares business that houses IBIT. A stabilizing bitcoin serves the firm’s flagship crypto product directly.

Bulls, Bears, and the $65,000 Test

Other voices support the recovery case. JPMorgan analysts described improving institutional demand in bitcoin futures as an encouraging sign, Forbes reported. BlackRock’s fixed income chief, Rick Rieder, told Bloomberg that up to $9 trillion in sidelined cash could fuel a sharp rally.

Bloomberg Intelligence ETF analyst Eric Balchunas offered a longer view in an X post. He argued that bitcoin ETFs may mirror the 22-year path of gold ETFs, with large gains, painful drawdowns, and rising high-water marks.

Bitcoin ETFs Likely to Mirror Gold's History of Triumph and Pain.. New from me on how gold ETFs' 22-year history may offer the closest roadmap yet for Bitcoin ETF investors. Both are wrappers around non-yielding stores of value that generate no cash flow, leaving investor… pic.twitter.com/3C4tZYPLCp

— Eric Balchunas (@EricBalchunas) July 17, 2026

The bears have data too. Analysts at crypto exchange Bitfinex warned earlier this month that a renewed outflow shock could stall the rebound.

Meanwhile, Bitcoin’s price recovery has repeatedly stalled below $65,000 resistance, leaving it down about half from October’s $126,000 peak.

The near-term test is simple. If daily inflows persist through the Federal Reserve’s month-end rate decision, the stabilization Fink describes gains real evidence. Flat IBIT holdings suggest sellers are exhausted, but sustained buying has yet to prove itself.