BlackRock says bitcoin’s decline of more than 50% from its October 2025 peak has not altered the asset’s long-term investment case. In a new report, the asset manager maintains its suggested 1–2% portfolio allocation to bitcoin, funded by trimming equities.
BlackRock Reaffirms Bitcoin Thesis
In a report titled “Re-Underwriting Bitcoin,” BlackRock outlines why it believes the cryptocurrency’s sharp drawdown does not change its strategic outlook. The firm reiterates that a modest, diversified exposure remains appropriate and recommends sourcing the allocation from equities rather than increasing overall portfolio risk.
Suggested Allocation: 1–2% Funded From Equities
- Target allocation: 1–2% of a multi-asset portfolio.
- Funding source: reallocate from equities, not cash or fixed income.
- Rationale: maintain diversification while managing overall risk levels.
Market Context
Bitcoin (BTC) has experienced significant volatility since reaching an all-time high in October 2025, with prices subsequently falling more than half from that level. Despite the drawdown, institutional interest and infrastructure development around digital assets have continued to advance, even as regulatory and macroeconomic conditions remain key variables for the market.
Key Takeaways
- BlackRock’s long-term view on bitcoin remains intact despite recent market weakness.
- The firm continues to advocate a small, strategic allocation within diversified portfolios.
- Funding the position from equities is intended to keep total portfolio risk in balance.