Larry Fink: A Further 20% Market Decline Is Still on the Table

BlackRock CEO Larry Fink warned that the market could see another 20% drop, but he remains optimistic about the long-term prospects, viewing the current market downturn as a chance for investors to buy.

Speaking at the Economic Club of New York on Monday, Fink acknowledged the possibility of further losses, stating, “While we could see more downward movement, I see this more as a buying opportunity than a selling one.” He emphasized that, despite the volatility, the current market conditions do not present a systemic risk.

Fink also highlighted rising inflationary pressures that have caught many market participants by surprise. He noted that many investors already believe the U.S. is in a recession, making it unlikely that the Federal Reserve will cut interest rates this year.

In a recent shareholder letter, Fink also voiced concerns about the impact of Bitcoin (BTC) on the U.S. dollar. He warned that if more Americans begin considering the cryptocurrency a safer asset than the dollar, it could weaken the currency’s standing in the global economy.

The markets have been in turmoil since President Donald Trump announced new tariffs on imports, triggering sell-offs across various sectors. Bitcoin has dropped 5% over the past five days and 11% in the last month. Meanwhile, stocks have faced even steeper declines, with the S&P 500 and Nasdaq down 13% and 15%, respectively.