Blackrock says bitcoin’s more than 50% pullback from its October 2025 high hasn’t changed the asset’s long-term investment case, and the firm still recommends a 1-2% portfolio allocation funded out of equities.
Key Takeaways
Blackrock says bitcoin’s 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 portfolio.Blackrock’s 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’s flagship fund has continued attracting fresh capital on stronger days.
Another aspect covered in the report has been bitcoin and its “dual personality” 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.
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.
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.
