BlackRock: Market Could Drop 20%, But Investment Opportunities Exist
BlackRock CEO Larry Fink has warned that the U.S. stock market could experience a decline of up to 20% due to the government’s aggressive import tariff policies, which may also impact other risk assets, including crypto.
This warning came after U.S. President Donald Trump imposed a 10% import tariff on all products entering the U.S., prompting retaliatory responses from China and the European Union, and raising fears of a global trade war.
Recession Concerns Among Corporate Executives
Citing information from Coinvestasi, Fink revealed that many corporate executives believe the U.S. economy has already entered a recession.
“Most CEOs I speak with say we are likely already in a recession,” he stated.
This comment came amid rising investor panic caused by President Trump’s economic policies, which heavily rely on import tariffs.
Many analysts believe this approach could worsen the global economic situation. However, Trump remains firm in his strategy, urging his supporters on platform X to stay “strong and patient.”
Impact on Stock and Crypto Markets
The impact was immediately felt across major U.S. stock indices such as the S&P 500 and Nasdaq Composite, both of which fell by up to 10% over the past five days.
Crypto assets were also not spared from the pressure. Data from CoinMarketCap showed that the total crypto market capitalization temporarily dropped to US$2.39 trillion, with a decline of over 10% during trading on Monday (April 7, 2025), before recovering to US$2.55 trillion at the time of writing.
Financial Institutions’ Forecasts and Investment Opportunities
Several major financial institutions have updated their projections. Goldman Sachs increased the probability of a U.S. recession to 45%, while JPMorgan projected a 60% chance of recession.
Despite the turmoil, Larry Fink sees opportunity in the panic. He stated that the current market conditions are more favorable for buying than selling, although he did not rule out the possibility of further correction.
“It doesn’t mean the market can’t drop another 20% from where we are today,” he concluded.
