BlackRock Sticks to Long-Term Bitcoin Case Despite 50% Decline
BlackRock, a major asset manager, has reaffirmed its stance on Bitcoin's long-term investment potential despite the cryptocurrency's over 50% decline from its all-time highs in October 2025 to mid-2026 lows. According to BlackRock, this sell-off was due to 'idiosyncratic deleveraging and flow dynamics' rather than a structural shift in Bitcoin's trajectory.
The firm attributed the drop to investors seeking a hedge against macro risks, market positioning, and extreme leverage levels that led to deleveraging. This resulted in liquidation waves pushing BTC below $60,000 by June 2026. Weaker institutional inflows, partly due to investor attention pivoting towards AI-themed products, also slowed Bitcoin's price recovery.
However, BlackRock views these developments as cyclical flow dynamics rather than a structural change in BTC's long-term adoption. The firm endorses modest BTC allocations, citing its potential role as a global monetary alternative and a hedge against fiat debasement. According to their analysis, every developed-market currency has lost more than 99% of its value against gold over the past century.