Why BlackRock Is Still Bullish on Bitcoin After Its 50% Crash

Bitcoin has lost more than half its value from its October 2025 peak, but BlackRock does not see the correction as a breakdown of the Bitcoin thesis. Instead, the asset manager sees leverage, changing capital flows and macro expectations as the main forces behind the sell-off.

That distinction matters because BlackRock’s long-term case is now less about Bitcoin simply going up and more about where the asset could fit inside diversified portfolios over the next decade.

The Crash Was About Positioning, Not Bitcoin’s Core Case

Bitcoin climbed to around $126,000 in October 2025 before falling toward $60,000 in 2026. BlackRock attributes much of that decline to excessive leverage and changing market positioning.

Crypto futures open interest had climbed above $90 billion near the peak, with roughly 80% coming from perpetual futures outside CME markets. When tariff shocks and changing rate expectations hit risk assets, liquidations accelerated the decline.

BlackRock also pointed to long-term holders adjusting positions around the psychologically important $100,000 level and weaker demand from digital-asset treasury companies.

The $60B ETF Inflow Story Still Matters

Spot Bitcoin ETPs attracted around $60 billion in cumulative inflows from their launch through October 2025. That was followed by more than $5 billion in net outflows as investor attention moved toward other areas, including AI-focused funds that attracted more than $46 billion during the same period.