BlackRock Still Sees Long-Term Potential in Bitcoin After Crash

BlackRock remains bullish on Bitcoin despite its 50%+ crash from its October 2025 peak of $126,000. The asset manager attributes much of the decline to excessive leverage and changing market positioning, rather than a breakdown in the cryptocurrency's core investment case.

The world's largest asset manager views the sell-off as the result of crypto-native deleveraging and shifting flows, not a change in the long-term thesis. BlackRock points out that long-term holders adjusted positions around the psychologically important $100,000 level and weaker demand from digital-asset treasury companies contributed to the decline.

BlackRock also noted that spot Bitcoin ETPs attracted around $60 billion in cumulative inflows from their launch through October 2025. However, this was followed by more than $5 billion in net outflows as investor attention moved toward other areas.

The asset manager's long-term case for Bitcoin rests on several factors: its fixed supply, expanded institutional access via regulated ETPs, supportive regulation, and its potential to behave differently from traditional assets. BlackRock also believes that Bitcoin can offer protection against declining fiat purchasing power.