Blackrock Stands Firm on Bitcoin's Long-Term Value Amid Price Decline

Blackrock has reaffirmed its long-term value for Bitcoin, stating that the cryptocurrency's decline from its October 2025 peak is a correction rather than a change in investment thesis. According to Blackrock, the significant price drop was caused by leverage unwinding, institutional rotation to AI funds, and large holder selling.

The firm highlighted a major liquidation event in October 2025 as a contributing factor to the decline. Despite this, Blackrock notes that there is ongoing selective institutional demand for Bitcoin, even if it comes with outflows from Bitcoin ETFs.

In its analysis, Blackrock views recent price correlations between Bitcoin and equities as temporary rather than structural. As such, the firm continues to recommend a modest 1-2% allocation to Bitcoin within a traditional 60/40 stock-bond portfolio.