Bitcoin has fallen more than 50% from its October 2025 record, but BlackRock says the drawdown has not changed its long-term investment case. The asset manager attributes the decline to heavy leverage, forced liquidations, weaker fund flows, and shifting market liquidity, describing the move as a positioning correction rather than a change in Bitcoin’s investment thesis.
After rising roughly 690% from its late-2022 low to $124,606, Bitcoin slid to $58,642 in early June 2026, a 53% peak-to-trough decline. BlackRock noted that Bitcoin ETF outflows and inflows into AI funds added selling pressure after the October peak. The firm still views Bitcoin as a portfolio diversifier, while cautioning that sharp volatility remains a risk.
BlackRock has also recommended that investors consider allocating 1% to 2% of their portfolios to Bitcoin. The advice reignited debate over whether adoption has matured. Bitwise CEO Hunter Horsley pushed back on that interpretation, arguing that the recommendation shows Bitcoin adoption is still early even in 2026. Horsley stressed that Bitcoin still has room to accommodate global investment portfolios and that growing institutional demand has not dimmed the long-term opportunity.
