BlackRock doesn’t want to recommend crypto for hedge investment in current conditions

Source Cryptopolitan

BlackRock is not recommending crypto as a hedge right now, despite holding $48 billion in Bitcoin and $2 billion in ETH. They’re predicting a recession and still not pushing crypto. 

Jean Boivin, head of the BlackRock Investment Institute, said the market’s too unstable and the risks are piling up. “Trade tensions have triggered a risk asset selloff,” Jean said in a note to clients on Tuesday.

This came after president Donald Trump pushed for new tariffs on foreign countries. That announcement blew up the market late last week. Traders panicked. Stocks got dumped. Investors scrambled for anything safe. 

BlackRock immediately downgraded U.S. stocks from “overweight” to “neutral” and turned toward short-term U.S. Treasurys, raising their rating from “neutral” to “overweight.” Jean said the firm is now reducing risk, tightening its tactical window to just three months.

BlackRock cuts exposure and leans into short-term Treasurys

Jean wrote that volatility will stick around and there’s no sign of stability yet. “We shorten our tactical horizon … and reduce risk,” he said. “Turning neutral on U.S. equities and preferring short-term Treasuries.” 

The team sees no reason to recommend crypto while the whole market feels like it’s on fire. Jean believes equities will stay shaky until something clears up with Trump’s trade policies.

Even though stocks tried to bounce back on Tuesday, it was so obviously a ‘dead cat bounce,’ or the ‘sucker rally,’ as Wall Street bros like to call it. People dumped risk assets across the board. The S&P 500 rose over 4% during the day but still ended with a 1.6% drop. The Dow jumped 3.9% early in the session, then fell 0.8% by the close.

BlackRock doesn’t want to recommend crypto for hedge investment in current conditions.
Source: TradingView

Nasdaq-100 futures fell 1.21%, S&P 500 futures dropped 1.53%, and Dow Jones futures lost 1.54%, dropping 583 points. None of it helped. Markets stayed on edge, and Jean said the “extreme uncertainty” around tariffs sparked the whole selloff.

BlackRock expects this pressure to continue. Jean said, “If clarity comes quickly, we would up risk-taking again.” Until then, he’s advising clients to stay defensive. That means short-term U.S. Treasurys over longer-term ones, since interest rates and inflation remain high. 

The firm sees core inflation as sticky, and the U.S. deficit as a red flag. Jean told investors to avoid long-term Treasurys entirely. He added that gold might help balance things out in this kind of market, but never once mentioned crypto as part of the safe zone.

Meanwhile, Bitcoin is still floating around $77,428, but BlackRock’s silence is loud. While retail investors bleed out and big players sit still, there are growing claims that cartels are shaking out the market. Some believe they’re crashing crypto prices on purpose so they can buy up cheap and take control of the space—just like how Wall Street took over the stock game.

Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, 2024
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Ethereum (ETH) Underperforms All Top 5 Major Cryptos in Brutal 2025 DowntrendDespite signs of improving momentum, with RSI climbing and EMA lines hinting at a potential breakout, ETH continues to lag behind competitors like Solana in multiple metrics.
Author  Beincrypto
Apr 23, Wed
Despite signs of improving momentum, with RSI climbing and EMA lines hinting at a potential breakout, ETH continues to lag behind competitors like Solana in multiple metrics.
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
XRP spot ETF approval odds surge to 92% for 2025The 2025 XRP Spot ETF approval odds increase to 92% amid a shift in market sentiment.
Author  Cryptopolitan
Jun 04, Wed
The 2025 XRP Spot ETF approval odds increase to 92% amid a shift in market sentiment.
placeholder
Solana (SOL) Breakout Watch: Price Could Rally Hard Above $150 Level?Solana started a fresh increase from the $125 zone. SOL price is now consolidating gains and aims for more gains above the $150 level.
Author  NewsBTC
Jun 25, Wed
Solana started a fresh increase from the $125 zone. SOL price is now consolidating gains and aims for more gains above the $150 level.
goTop
quote