BlackRock maintains bullish Bitcoin outlook despite 50% price drop

BlackRock maintains its long-term investment thesis for Bitcoin despite the cryptocurrency losing over 50% of its value from its October 2025 peak of approximately $126,000. The asset manager attributes the recent price decline, which saw Bitcoin drop toward $60,000, to market positioning and liquidity events rather than structural failures.

Key drivers of the crash include heavy deleveraging, with futures open interest exceeding $90 billion at the peak. A significant portion of this exposure—roughly 80%—was held in offshore perpetual contracts offering high leverage, making positions vulnerable to forced liquidations. Additionally, shifting capital flows contributed to the weakness, as investors rotated from spot Bitcoin ETPs into AI-focused funds.

BlackRock continues to view Bitcoin as a unique portfolio diversifier and a global monetary alternative. The firm notes that Bitcoin’s mathematical scarcity and independence from central bank discretion provide strategic value, particularly as global public debt continues to rise. However, the firm also warns that the asset remains highly volatile and speculative.