Can the Bitcoin rebound continue? BlackRock CEO: Sovereign funds are quietly accumulating at $80,000

The CEO of the world’s largest asset management company, BlackRock, Larry Fink, has revealed that some sovereign wealth funds are “gradually” buying Bitcoin. Fink stated that they bought more Bitcoin at the $80,000 price point, emphasizing that this is not a trade but a purposeful holding. He defines Bitcoin as a hedge against personal insecurity, financial instability, and long-term devaluation, and points out that the recent crash was caused by leveraged players rather than fundamental factors.

Strategic Significance Behind Sovereign Funds Bottom-Fishing at $80,000

Fink’s disclosure reveals the most important hidden buying force in the Bitcoin market. Sovereign wealth funds are institutions that manage national foreign exchange reserves and long-term investments, with asset sizes often reaching hundreds of billions or even trillions of dollars. Their investment decisions are extremely prudent, typically allocating only to assets with abundant liquidity, clear legal status, and long-term value storage potential. Their choice to buy Bitcoin when it fell to $80,000 indicates that this price level is seen as a highly attractive accumulation zone.

“Their building long-term positions. This is not a trade.” The meaning behind this statement is profound. Sovereign funds are not buying for short-term trading gains but as part of strategic allocation of national foreign reserves. The nature of this long-term holding means that these positions are unlikely to exit easily, providing stable support for the market. When Bitcoin hovered around $80,000 and many retail investors panic-sold, sovereign funds quietly accumulated, a classic sign of a market bottom where smart money diverges from retail.

Fink also noted that the recent crash was caused by leveraged players rather than fundamental factors. In November, Bitcoin fell from a high of $126,000 to a low of $80,000, a drop of more than 36%. This sharp decline was mainly triggered by overleveraged perpetual contract longs being liquidated, causing a chain reaction. However, Bitcoin’s fundamentals did not deteriorate during this period: US Bitcoin ETFs remained operational, institutional adoption continued, and the global regulatory environment improved.

This divergence between fundamentals and price is exactly why sovereign funds chose to enter. After leveraged speculators are washed out of the market, true long-term value investors have the opportunity to build positions at reasonable prices. For sovereign funds managing hundreds of billions of dollars, $80,000 may be seen as a rare low-price buying window for the coming years.

Four Strategic Considerations for Sovereign Wealth Funds Buying Bitcoin

Hedging Against Dollar Depreciation: Diversifying foreign reserve allocation amid global de-dollarization trends.

Inflation Hedge Tool: Bitcoin’s supply cap of 21 million gives it anti-inflation properties.

Geopolitical Insurance: Decentralized assets are not subject to any single country’s control, providing sovereign independence.

Generational Wealth Transfer: Digital-native assets are suitable for long-term storage and intergenerational transfer.

Fink’s public disclosure itself is also a strong signal. Sovereign wealth funds are usually very low-profile and rarely disclose their portfolio details. Fink chose to reveal this information at a high-profile event like DealBook, possibly to signal to a broader range of institutional investors that Bitcoin has already been recognized by top-tier institutions and it’s time to seriously consider allocating it.

Three Sovereign Fund Cases: From Luxembourg to Kazakhstan

Although Fink did not reveal specific sovereign wealth funds, recent reports show that more and more institutions are adopting this approach. Luxembourg recently chose Bitcoin as an investment target for its Luxembourg Intergenerational Sovereign Wealth Fund (FSIL), allocating 1% of its assets (about 7 million euros) to Bitcoin. At the 2025 Amsterdam Bitcoin Conference, Luxembourg’s Finance Minister Gilles Roth emphasized Luxembourg’s desire to be among the first countries to adopt Bitcoin through its sovereign wealth fund.

The importance of the Luxembourg case lies in its symbolism. Luxembourg is a core EU member and a major global financial center. Its sovereign fund allocating to Bitcoin represents a shift in traditional European finance’s attitude toward crypto assets. The 1% allocation, although not high, is a typical starting strategy for conservative institutions. As Bitcoin’s performance stabilizes and confidence grows, this proportion could gradually increase to 3% to 5%.

Kazakhstan’s central bank case has even greater scale potential. Reportedly, Kazakhstan is preparing to invest up to $300 million in crypto assets, with the final amount likely between $50 million and $250 million depending on market conditions. Kazakhstan was once the world’s second-largest Bitcoin mining country, with rich crypto industry experience and understanding. Its central bank’s decision to directly invest in crypto assets demonstrates deep recognition of this asset class.

These two public cases may be just the tip of the iceberg. Many sovereign wealth funds may have already allocated to Bitcoin but choose not to disclose it to avoid market impact and political controversy. Giant funds like Abu Dhabi Investment Authority (ADIA), Norway’s Government Pension Fund Global, and Singapore’s Temasek, each managing over a trillion dollars—if any allocated 1% of assets to Bitcoin, that would equate to tens of billions of dollars in buying power.

Middle Eastern sovereign funds are particularly worth watching. Oil-rich countries like Saudi Arabia and the UAE have huge sovereign wealth funds and are actively pushing for economic diversification to reduce reliance on oil. Bitcoin, as “digital gold” and an energy-intensive asset, aligns closely with these countries’ strategic pivots. Recent reports indicate some Middle Eastern sovereign funds are evaluating Bitcoin allocation plans, though none have been formally announced yet.

Bitcoin Channel Analysis: $91,000 Is the Key Support

(Source: Trading View)

Bitcoin is currently operating within a clearly defined ascending channel. Although it recently pulled back from the upper boundary, as long as the price holds the support area around $90,500 to $91,000 in the lower-middle channel, the structure remains bullish. An ascending channel consists of parallel trendlines connecting a series of higher highs and higher lows, typically appearing in sustained uptrends.

The rejection at the channel top coincides with the Fair Value Gap (FVG) left in late November, resulting in short-term exhaustion. A Fair Value Gap refers to an unfilled area left by rapid price movement, which often gets filled later. When Bitcoin touched the channel top, it entered the FVG area, triggering profit-taking pressure.

However, buyers quickly absorbed the selling near the FVG, showing that momentum remains on their side. This ability to rapidly absorb selling pressure is a hallmark of a strong market. The expected bear flag pattern failed to persist, which typically morphs into a continuation pattern in the opposite direction, further strengthening signals of upward expansion. A bear flag should indicate continued decline, but its failure instead becomes a bullish signal.

If Bitcoin tests the lower channel boundary again, it will likely serve as a springboard for the next rally. In an ascending channel, every pullback to the lower boundary is a buying opportunity, as it provides technical support. Given the current market structure, the path of least resistance remains toward the upper channel line around $97,000 to $99,000. Breaking through this line will open the door to the broader target area of $100,000 and above.

Three Key Technical Signals for Bitcoin Rally Continuation

Hold $91,000 Support: The lower boundary of the ascending channel must not be lost, or the channel structure breaks.

Rapid FVG Refill: The Fair Value Gap is quickly absorbed, indicating strong buying.

Bear Flag Fails, Turns Bullish: The expected bearish pattern fails to continue and instead becomes a signal for further rally.

From a volume perspective, Bitcoin’s trading volume shrinks during pullbacks and expands on rebounds. This volume-price coordination is a typical feature of healthy rallies. If volume continues to expand and breaks through the $97,000 resistance, a new upward cycle will be confirmed.

Fink’s Shift and Wall Street’s Collective Awakening

Fink’s “thought process on crypto has changed.” He explained Bitcoin’s entire use case to a room full of Wall Street elites. The impact of such a public statement cannot be underestimated. As CEO of BlackRock, overseeing more than $10 trillion in assets, Fink’s views are a bellwether for the entire asset management industry. When he publicly endorses Bitcoin, countless institutional investors who are still on the sidelines may change their stance.

He defines Bitcoin as a hedge against personal insecurity, financial instability, and long-term devaluation. This definition elevates Bitcoin from a speculative tool to a risk management tool—a key narrative shift for institutional acceptance. Institutional investors typically do not engage in speculation, but they are willing to pay for risk hedging and asset preservation. Repositioning Bitcoin as an insurance tool opens the theoretical foundation for institutional allocation.

Fink’s shift also reflects a collective awakening on Wall Street. Just a few years ago, most Wall Street executives saw Bitcoin as a bubble or a scam. But as Bitcoin has weathered multiple market cycles, regulatory frameworks have improved, and institutional-grade products have launched, Wall Street’s attitude has fundamentally changed. Whether the Bitcoin rally can continue largely depends on the depth and persistence of this shift in institutional attitude.

The entry of sovereign funds marks the highest stage of institutional adoption for Bitcoin. Before sovereign funds, Bitcoin went through the retail era, family office era, public company era, and asset management company era. Sovereign funds represent nation-level capital; their entry means Bitcoin has moved from a fringe asset to the core of the mainstream financial system.