Bitcoin Down 50%, But BlackRock Sticks to Long-Term Bull Case

Bitcoin's value fell by over 50% from its October 2025 record before hitting lows below $60,000 in June. Despite this significant decline, BlackRock maintains a long-term positive view on the cryptocurrency.

The asset manager attributed the correction to excessive leverage, weaker institutional flows, and slower purchasing by digital asset treasury companies. According to BlackRock's research report, the decline was more of a positioning and liquidity event rather than evidence that Bitcoin's monetary or diversification properties had structurally changed.

BlackRock has historically found that adding a 1% or 2% allocation of Bitcoin to a traditional U.S. 60/40 portfolio improves hypothetical risk-adjusted returns. The firm's analysis showed that a 1% allocation produced a Sharpe ratio of 0.90, compared with 0.81 for the benchmark.