Bitcoin lost more than 50% between its October 2025 record and its June low. BlackRock, however, is not changing its position. In a new report dedicated to BTC, the world’s leading asset manager maintains an allocation of 1 to 2% in a traditional portfolio. For him, the fall comes mainly from leverage, institutional exits and sales from large holders. No change in the Bitcoin file.
In brief
- BlackRock maintains a 1-2% allocation to Bitcoin.
- BTC has lost more than 50% since its October 2025 peak.
- Nearly $20 billion in open interest disappeared in a single day in October.
Bitcoin keeps its place at BlackRock
BlackRock has long advocated a 1 to 2% allocation to bitcoin. The decline in recent months does not change this recommendation. The group updated its calculations over ten years. In a typical portfolio of 60% stocks and 40% bonds, this small exposure to bitcoin would have improved risk-adjusted returns.
BlackRock proposes to take this allocation on the equity portion. A 60/40 portfolio can therefore become slightly less exposed to stocks and devote 1 or 2% to Bitcoin.
No more. Caution remains important since bitcoin still displays much higher volatility than the main traditional asset classes. BlackRock therefore does not present bitcoin as the heart of a portfolio. The group considers it rather as a complementary asset that can provide a different source of return. Even after falling by half.
The drop mainly comes from leverage
Bitcoin had exceeded $120,000 in October 2025. Open interest on futures contracts then exceeded $90 billion. The market was busy. On October 10, renewed trade tensions between the United States and China triggered a wave of selling. In one day, approximately $20 billion in bitcoin open interest disappeared.
Further liquidations followed in February and then in June 2026. Bitcoin finally fell below $60,000. Institutionals have also slowed down. Between January 2024 and October 2025, spot Bitcoin ETPs had attracted approximately $60 billion. Since October, BlackRock has calculated more than 5 billion exits.
The money went elsewhere. Artificial intelligence-related funds received more than $46 billion over the same period. Some investors simply changed their theme. Large holders also sold. Miners, old wallets and companies with Bitcoin treasuries have added supply to the market.
Strategy even sold 32 BTC in June. A tiny amount compared to its stock, but unusual for a company known for hoarding. Despite the outflows, BlackRock is still seeing strong institutional demand for Bitcoin and Ethereum. Demand has slowed. She hasn’t disappeared.
BlackRock does not change its thesis
BlackRock continues to present bitcoin as a global monetary alternative and a possible tool against currency depreciation. The group also notes its low long-term correlation with stocks.
Over ten years, the correlation of bitcoin with the S&P 500 reaches 0.18. That of gold is around 0.06. However, the behavior of BTC varies a lot in the short term. During certain liquidation phases, Bitcoin falls with stocks. During certain geopolitical episodes, it can on the contrary evolve as a hedging asset.
BlackRock speaks of “split personality”. The manager also believes that the volatility of Bitcoin has decreased over the last decade with the development of derivatives markets and listed products. Leverage on perpetual contracts can still cause serious accidents.
October provided a good example. Since then, speculative positioning has declined significantly. Funding rates for perpetual contracts even briefly became negative in the second quarter.
The flows are also starting to return at times. At the end of July, BlackRock’s Bitcoin ETF alone once again led to a positive session on American funds. BlackRock therefore does not promise any rapid return to the top. His message fits into a fairly small allocation. Bitcoin has lost more than half of its value. BlackRock keeps its 1 to 2%.
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