BlackRock Stands by Bitcoin Thesis Amid 50% Price Drop

BlackRock has reaffirmed its long-term investment thesis on Bitcoin despite a recent decline of over 50% from its October 2025 record high to below $60,000 in June 2026. The asset manager attributed this drop to excessive leverage, weaker institutional flows, and reduced buying by digital asset treasury companies.

According to BlackRock's analysis, a small 1-2% Bitcoin allocation can improve portfolio risk-adjusted returns, although the company warns that Bitcoin remains volatile and speculative.

The future market direction depends on ETF flows, futures positioning, and treasury sales. This is in contrast to any fundamental change in Bitcoin's monetary or diversification qualities, which remain intact, according to BlackRock.