BlackRock Sees Bitcoin as Long-Term Investment Opportunity Despite 50% Decline

Bitcoin has been in a bear market since October 2025, having fallen by more than 50% from its all-time high of $126,000. The price tested the $57,000 level before stabilizing around $63,000.

Despite the sharp decline, BlackRock remains bullish on Bitcoin. In its latest report, the world's largest asset manager stated that the correction exceeding 50% does not mean the long-term investment thesis for BTC has collapsed.

The company attributed the decline to delegitimization, changing market positions, a shift in capital from Bitcoin to AI-focused investments, weaker capital flows, and slower purchases of digital asset treasuries. BlackRock also noted that sales by digital asset treasury companies and large Bitcoin holders increased market pressure and contributed to the decline.

However, the company argues that its long-term investment thesis for Bitcoin remains unchanged. According to BlackRock, BTC's limited supply and potential to behave differently from traditional financial assets make it a suitable portfolio diversification tool and hedge against declining fiat purchasing power.