BlackRock Maintains Bullish Stance on Bitcoin Despite 50% Decline From Its All-Time High

Leading asset manager BlackRock has adopted a bullish stance on Bitcoin (BTC), noting that the recent price decline is not a collapse of its long-term investment case. BlackRock’s analysts predict that earmarking 2% of an investment portfolio will offer higher returns without additional risks.

BlackRock unfazed by Bitcoin’s 50% price slump

BlackRock has made a case for Bitcoin, urging investors to add the largest cryptocurrency to their investment portfolios. In a report, the firm’s analysts are looking past the asset’s recent sell-off, branding BTC as a “portfolio diversifier” in the long term.

Bitcoin price reached an all-time high of $126,198 in October 2025, before enduring a painful decline to its present levels of $63,000, a near-50% decline from its peak. According to BlackRock, the price decline is cyclical rather than evidence of a structural reversal in Bitcoin adoption. 

Source: BlackRock

“We view the sell-off as a function of idiosyncratic deleveraging and flow dynamics, and believe bitcoin’s core investment case as an important emerging global monetary alternative and unique portfolio diversifier remains unchanged.” 

Per BlackRock, a risk-off catalyst tied to China tariff headlines triggered large-scale deleveraging, sending BTC below $60K in June. BlackRock noted that heavy leverage use also amplified the decline, causing BTC to behave as a traditional risk asset.

The firm also pointed to weaker institutional inflows contributing to the slump. Spot Bitcoin ETFs attracted over $60 billion between their January 2024 launch and October 2025, before recording jarring outflows as investors turned their gaze away from the asset class.

A long-term case for Bitcoin

Given their conviction in Bitcoin, its analysts found that a 1% to 2% Bitcoin allocation can improve the risk-adjusted returns of a traditional 60/40 portfolio. However, some critics say the modest recommendation is proof that BlackRock remains cautious toward the asset Bitcoin despite the bullish nature of the report.

“In our view, a measured allocation to bitcoin is likely to remain compelling for many investors, serving as a potential strategic diversifier for long-term portfolio construction,” read the report.

Meanwhile, the asset manager is forging ahead with Bitcoin, with BlackRock’s IBIT setting the pace for spot Bitcoin ETFs since its launch. Apart from institutionalizing bitcoin as an investable asset class, BlackRock categorizes digital assets as a “high-growth” investment opportunity.

BlackRock is not the only major player making a case for Bitcoin. Wall Street heavyweight Goldman Sachs has hinted at a price recovery for Bitcoin in the coming weeks despite a spike in “crypto is dead” chatter on the internet.