{"id":77004,"date":"2026-08-19T10:49:34","date_gmt":"2026-08-19T10:49:34","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/blackrock-believes-bitcoins-investment-case-holds-despite-50-drop\/"},"modified":"2026-08-19T10:49:34","modified_gmt":"2026-08-19T10:49:34","slug":"blackrock-believes-bitcoins-investment-case-holds-despite-50-drop","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/blackrock-believes-bitcoins-investment-case-holds-despite-50-drop\/","title":{"rendered":"Blackrock Believes Bitcoin&#8217;s Investment Case Holds Despite 50% Drop"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Blackrock says bitcoin\u2019s 50% drop from its $126,300 high is a positioning correction, not a thesis change.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">A single-day liquidation cascade on October 10 wiped out roughly $20 billion in bitcoin open interest.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Blackrock still recommends a 1-2% bitcoin allocation funded from equities in a 60\/40 portfolio.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Blackrock\u2019s Case for Staying the Course<\/h2>\n<p>In a new report titled \u201c<a href=\"https:\/\/www.blackrock.com\/us\/financial-professionals\/literature\/whitepaper\/re-underwriting-bitcoin.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Re-Underwriting Bitcoin<\/a>,\u201d Blackrock laid out why it believes the cryptocurrency\u2019s steep decline reflects a shakeout in positioning rather than a breakdown in the underlying investment thesis. Bitcoin has fallen more than 50% from its October 2025 all-time high of $126,300, and the asset manager pinned the drop on three overlapping forces, namely:<\/p>\n<ul>\n<li>Crypto-specific leverage unwinding<\/li>\n<li>Slowing institutional inflows<\/li>\n<li>Selling pressure from large holders, rather than any fundamental change to bitcoin\u2019s role as a monetary alternative or portfolio diversifier<\/li>\n<\/ul>\n<figure id=\"attachment_840491\" aria-describedby=\"caption-attachment-840491\" style=\"width:942px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-840491\" class=\"wp-caption-text\">Image source: Blackrock Report<\/figcaption><\/figure>\n<p>Moreover, the asset manager\u2019s report points to specific mechanics behind the selloff, noting that speculative positioning had reached extreme levels heading into October 2025, with bitcoin futures open interest exceeding $90 billion. A <a href=\"https:\/\/news.bitcoin.com\/learning-insights\/crypto-liquidation-cascades-explained\/\">liquidation cascade on October 10<\/a> then wiped out roughly $20 billion of that open interest in a single day, and further liquidation waves followed in February and June of this year.<\/p>\n<p>The firm also noted that artificial intelligence (AI)-themed funds pulled in more than <a href=\"https:\/\/finance.yahoo.com\/markets\/crypto\/articles\/blackrock-updates-bitcoin-outlook-historic-194247130.html\" target=\"_blank\" rel=\"noopener noreferrer\">$46 billion in the months<\/a> after October, a rotation of institutional capital toward a competing narrative that likely compounded bitcoin\u2019s underperformance even as its core case stayed unchanged in Blackrock\u2019s view.<\/p>\n<h2>Where the Selling Pressure Came From<\/h2>\n<p>U.S. spot bitcoin ETPs saw roughly $5 billion in aggregate outflows during the drawdown, a meaningful reversal after the products drove much of the asset\u2019s 2024 and 2025 rally. Strategy, the bitcoin treasury company formerly known as Microstrategy, <a href=\"https:\/\/news.bitcoin.com\/strategys-32-btc-sale-hits-bitcoin-as-price-slides-5-and-liquidations-top-627m\/\">sold a small amount of its bitcoin holdings<\/a> in June and introduced a new capital-allocation framework that explicitly permits further sales under certain conditions, a shift for a company that had built its identity around never selling.<\/p>\n<figure id=\"attachment_840492\" aria-describedby=\"caption-attachment-840492\" style=\"width:1181px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-840492\" src=\"https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/08\/blackrock-believes-bitcoins-investment-case-holds-despite-50-drop2_nwmk.jpg\" alt=\"Spot ETF outflow\" width=\"1181\" height=\"568\" srcset=\"https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/08\/blackrock-believes-bitcoins-investment-case-holds-despite-50-drop2_nwmk-300x144.jpg 300w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/08\/blackrock-believes-bitcoins-investment-case-holds-despite-50-drop2_nwmk-1024x492.jpg 1024w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/08\/blackrock-believes-bitcoins-investment-case-holds-despite-50-drop2_nwmk-768x369.jpg 768w, https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/08\/blackrock-believes-bitcoins-investment-case-holds-despite-50-drop2_nwmk.jpg 1181w\" sizes=\"auto, (max-width: 1181px) 100vw, 1181px\"\/><figcaption id=\"caption-attachment-840492\" class=\"wp-caption-text\">Cumulative ETP flows since January 2024, per Blackrock<\/figcaption><\/figure>\n<p>Blackrock\u2019s own iShares Bitcoin Trust, the ETF known by its IBIT ticker, was also party to a $1.3 billion block trade during the period, signalling how concentrated large institutional flows have become even as retail participation cooled. Despite that pressure, Blackrock\u2019s flagship fund has continued attracting fresh capital on stronger days.<\/p>\n<p>Bitcoin.com News recently tracked <a href=\"https:\/\/news.bitcoin.com\/crypto-news\/bitcoin-ether-etf-inflow-streak-blackrock-august-2026\/\">IBIT pulling in $479 million<\/a> as bitcoin exchange-traded funds (ETFs) extended an inflow streak, and a separate session in which Blackrock\u2019s <a href=\"https:\/\/news.bitcoin.com\/bitcoin-etf\/blackrocks-50-2m-inflow-offsets-selling-as-bitcoin-etfs-turn-green\/\">$50.2 million inflow<\/a> helped offset selling elsewhere in the ETF complex. The data seems to be indicative of the fact that institutional demand hasn\u2019t disappeared so much as become more selective about timing entries during the downturn.<\/p>\n<h2>Bitcoin\u2019s \u201cDual Personality\u201d<\/h2>\n<p>Another aspect covered in the report has been bitcoin and its \u201cdual personality\u201d when it comes to institutional portfolios, i.e. at times the asset trades in step with risk assets like equities during broad deleveraging events, and at other times acting as a hedge during geopolitical shocks.<\/p>\n<p>Blackrock characterized the periods when bitcoin correlates more closely with stocks as episodic rather than structural, meaning that it does not view the recent risk-on\/risk-off trading pattern as a permanent shift in what bitcoin is for.<\/p>\n<p>In any case, the financial behemoth has continued to recommend that a modest bitcoin allocation, in the range of 1% to 2% (funded by trimming equity exposure within a classic 60\/40 stock-and-bond portfolio), remains part of investor portfolios.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/featured\/blackrock-bitcoin-investment-case-50-percent-drop\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Blackrock says bitcoin\u2019s 50% drop from its $126,300 high is a positioning correction, not a thesis change. A single-day liquidation cascade on October 10 wiped out roughly $20 billion in bitcoin open interest. Blackrock still recommends a 1-2% bitcoin allocation funded from equities in a 60\/40 [&hellip;]<\/p>\n","protected":false},"author":3947362404,"featured_media":77005,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77004"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362404"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=77004"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/77005"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=77004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=77004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=77004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}