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Blackrock maintains Bitcoin's long-term value despite 50% drop, still recommends 1-2% portfolio allocation.

Market News
19 Aug 2026
Bitcoin
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Neutral
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Blackrock reports that Bitcoin's over 50% decline from its October 2025 peak is a correction due to leverage unwinding, institutional rotation to AI funds, and large holder selling, not a change in its investment thesis. The firm highlights a major liquidation event in October 2025 and ongoing selective institutional demand despite outflows from Bitcoin ETFs. Blackrock continues to recommend a modest 1-2% allocation to Bitcoin within a traditional 60/40 stock-bond portfolio, viewing recent price correlations with equities as temporary rather than structural.

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