BlackRock Inc. CEO Larry Fink stated on Wednesday that Bitcoin has more stability at current levels, with excessive leverage largely washed out of the system. Speaking in an interview with CNBC, Fink expressed that he was previously worried about too much leverage in Bitcoin and the broader cryptocurrency market, which led to a market washout. He now observes that capital markets have comparatively less implicit leverage, adding that he is very bullish on the markets over the next 12 months.

Market Stability and Leverage

Fink attributed the current stability to the removal of excess risk from the system. Bitcoin crashed in early October last year after surging to its all-time high, wiping out tens of billions in value and triggering the largest liquidation event in crypto history. Some observers have described this sell-off as a necessary reset that flushed out excess leverage and established a base-building phase before the next potential upward movement.

Evolution of Stance

Fink’s views on Bitcoin have evolved significantly over time. In 2017, he famously stated that Bitcoin demonstrated the demand for money laundering in the world. His skepticism has since evaporated; last year, he praised Bitcoin as a remedy for economic and political uncertainties, projecting a potential price rise to $700,000 if the concept gains global acceptance. Notably, BlackRock recommends a 1% to 2% allocation to Bitcoin in traditional multi-asset portfolios.

Financial Performance

BlackRock’s second-quarter results topped Wall Street expectations, driven by record inflows, revenue, and earnings. Assets under management increased 22% year-over-year to a record $15.34 trillion.

At the time of writing, Bitcoin was exchanging hands at $64,590.98, down 0.21% in the last 24 hours. BlackRock shares fell 0.08% in after-hours trading after closing 6.63% higher at $1093.40 during Wednesday’s regular trading session.

Ethereum (CRYPTO: ETH) surged above $1,900 on Tuesday following cooler-than-expected inflation data, which fueled heavy buying in futures markets and bolstered the case for a long-term bullish trend. The softer economic data reduced expectations for a Federal Reserve rate hike, boosting investor appetite for risk assets. While Bitcoin reclaimed the $65,000 mark, analysts argue that Ethereum is becoming a more attractive investment over the medium to long term due to structural tailwinds and improving regulatory clarity.

Ethereum vs. Bitcoin Performance

Market data indicates a shift in investor preference toward Ethereum. CryptoQuant noted that within an hour of the CPI data release, Binance recorded roughly $1.2 billion in taker buy volume for ETH, with significant buying activity also seen on Deribit and OKX. SoSoValue data highlights a divergence in exchange-traded fund (ETF) flows for July 2026: Bitcoin ETFs witnessed an outflow of $119 million, while Ethereum ETFs attracted $171.3 million during the same period.

Analyst Perspectives and Technical Outlook

Trader TheFlowHorse argued that Ethereum's growing stablecoin adoption, expansion of real-world asset tokenization, and stronger relative performance during recent market weaknesses make it superior to Bitcoin. Crypto chart analyst Ali Martinez highlighted a fresh bullish technical signal on the SuperTrend indicator, noting that the prior two buy signals on Ethereum’s 3-day chart preceded rallies of 72% and 177%.

Crypto analyst Kevin suggested that Ethereum’s higher-timeframe charts resemble the early stages of a major bear market bottom. He referenced the 2022 cycle, where Ethereum found its low months before Bitcoin, and believes a similar pattern could emerge. Kevin indicated he has begun accumulating Ethereum in anticipation of a potential inverse head-and-shoulders pattern forming over the coming months.

Market Statistics and Sentiment

Despite the rally, Coinglass data shows over $350 million was liquidated from the cryptocurrency market in the last 24 hours, with bearish short traders bearing the brunt of the losses. Bitcoin’s open interest rose 2.09%, though Binance derivatives traders reduced their long exposure. The global cryptocurrency market capitalization stood at $2.15 trillion. On-chain analytics firm Santiment noted that social media chatter is near its lowest levels since summer 2024, suggesting that low enthusiasm could amplify price movements if demand shifts.