Bitcoin falls 50%, but BlackRock keeps long term view

BlackRock said in an August 2026 research report that Bitcoin’s decline of more than 50% from its October 2025 record did not change the asset manager’s long term investment case. Summary Bitcoin fell more than 50% from October 2025’s record before reaching June lows below $60,000. Futures open interest exceeded $90 billion, with offshore perpetual contracts representing approximately 80% at peak. Spot Bitcoin ETPs lost roughly $5 billion after attracting $60 billion through October 2025 previously. Strategy sold 1,690 BTC in August, using $108.6 million to repurchase preferred shares during weakness. BlackRock’s historical analysis found 1% to 2% allocations improved hypothetical portfolio risk adjusted returns historically. The firm attributed the correction to excessive leverage, weaker institutional flows and slower purchasing by digital asset treasury companies. Its paper described the decline as a positioning and liquidity event rather than evidence that Bitcoin’s monetary or diversification properties had structurally changed. BlackRock’s view is an investment assessment, not a prediction that prices will recover. The firm also manages the iShares Bitcoin Trust ETF and warne...