Bitcoin Takes Over 50% Hit Since October Peak, BlackRock Stands Firm

Bitcoin has taken a significant hit since its October 2025 peak, plummeting over 50%. The decline is largely attributed to factors such as leverage, institutional outflows, and large holder sales.

Despite this downturn, BlackRock maintains its recommendation of allocating 1-2% of a traditional portfolio to Bitcoin. According to the firm, Bitcoin serves as a complementary asset that can enhance risk-adjusted returns due to its low long-term correlation with stocks and potential as a hedge against currency depreciation.

However, BlackRock cautions against expecting a quick return to peak prices, stating there is ongoing institutional demand and some recovery in flows. The firm also warns of high volatility associated with Bitcoin investments.