BlackRock Sticks by Bitcoin Despite 50% Crash, Sees Long-Term Potential

BlackRock remains optimistic about Bitcoin despite its recent 50% crash from its October 2025 peak of around $126,000. The asset manager attributes the decline to excessive leverage and changing market positioning rather than a breakdown in the core investment case.

The sell-off was largely driven by crypto-native deleveraging and shifting flows, not a change in the long-term thesis. BlackRock views the correction as a temporary setback, with the world's largest asset manager emphasizing that the core investment case for Bitcoin remains unchanged.

One key factor in BlackRock's continued optimism is the fixed supply of Bitcoin, which cannot be increased by a central bank. The firm also points to expanding institutional access through regulated exchange-traded products (ETPs) and increasing regulatory support for digital assets.

Historically, when spot demand has turned positive after a similar decline, Bitcoin has posted a median gain of around 18.1% over the following 60 days with an 87% win rate at depressed valuations.