BlackRock Sees Bitcoin Crash as a 'Mechanical' Market Event
Bitcoin's price plummeted by more than half its value since October 2025, dropping from around $126,000 to $60,000. This sharp decline has led many investors and analysts to question the future of Bitcoin.
However, BlackRock, the world's largest asset manager, remains optimistic about the cryptocurrency. According to them, the crash is not a reflection of a breakdown in Bitcoin's underlying case for owning it, but rather excessive leverage and shifting capital flows.
BlackRock blames the use of perpetual futures outside regulated venues like CME for the damage. When tariff shocks and changing interest-rate expectations hit risk assets broadly, this leverage unwound fast, leading to liquidations and further accelerating the slide.
The firm also points out that long-term holders adjusted their positions around the psychologically important $100,000 level, and demand from digital-asset treasury companies weakened at the same time. This suggests that the crash was more a result of market positioning rather than a change in investor conviction.