A distressed man holds his head while looking at multiple red stock market charts, representing financial stress and market decline.

Key Takeaways:

Larry Fink warns markets could drop another 20% but sees the downturn as a long-term buying opportunity.
He expects inflation to remain high and sees little chance of Fed rate cuts this year.
Fink cautions that Bitcoin’s rise as a store of value could weaken the U.S. dollar.

BlackRock CEO Larry Fink warned that financial markets could drop another 20%, but described the downturn as a long-term buying opportunity.

Speaking at the Economic Club of New York, Fink stressed that while further declines are possible, he sees no systemic risk to the broader financial system.

BlackRock CEO Larry Fink says he sees the recent selloff in US equities as a buying opportunity during an interview with Erik Schatzker at The Economic Club of New York https://t.co/me3X0eGFCX pic.twitter.com/J3HIT0clTb
— Bloomberg TV (@BloombergTV) April 7, 2025

He pointed to persistent inflation and predicted the Federal Reserve would likely not cut interest rates this year, despite growing fears of a recession.

Fink also raised concerns about Bitcoin’s rising popularity as a store of value, suggesting it could undermine the U.S. dollar if it gains widespread adoption.

These warnings echo sentiments he expressed in a recent letter to shareholders.

The markets have been turbulent, worsened by new tariffs introduced by President Donald Trump on imported goods.

Bitcoin has dropped 5% in the past five days and 11% over the past month.

Traditional equities have suffered steeper losses, with the S&P 500 down 13% and the Nasdaq 15%.

Despite the volatility, Fink maintained a cautiously optimistic tone, encouraging investors to consider the current environment as a potential long-term investment opportunity.