BlackRock Stands Firm on Bitcoin Despite 50% Crash

BlackRock, one of the world's largest asset managers, remains optimistic about Bitcoin despite its recent 50% crash from an all-time high of $126,000 in October 2025 to around $60,000. The firm attributes the decline to excessive leverage and changing market positioning, rather than a breakdown of the cryptocurrency's fundamental value.

The correction was largely driven by liquidations caused by tariff shocks and changing rate expectations, which accelerated the sell-off as investors adjusted their positions around the psychologically important $100,000 level. Additionally, digital-asset treasury companies showed weaker demand for Bitcoin during this period.

Notwithstanding these factors, BlackRock's long-term case for Bitcoin remains strong due to its fixed supply, expanded institutional access through regulated exchange-traded products (ETPs), and growing regulatory support for digital assets. The firm also believes that Bitcoin can offer protection against declining fiat purchasing power and behave differently from traditional assets.

In fact, BlackRock's updated 10-year portfolio analysis suggests that a 1%, 2% Bitcoin allocation could improve risk-adjusted returns for a traditional 60/40 portfolio, although the outcome depends heavily on the period and assumptions used. On-chain data also indicates that stronger holders are stepping in to buy Bitcoin at lower prices, which could be an encouraging sign after the recent sell-off.