Bitcoin (BTC) Enters a Bear Market, BlackRock Remains Bullish! Here’s Why and the Latest Statements
Bitcoin has been in a bear market since October 2025 and has experienced sharp declines. Having fallen by more than 50% since its all-time high of $126,000 in October, $BTC tested the $57,000 level. While $BTC is currently trading sideways around $63,000, BlackRock has offered a noteworthy Bitcoin analysis.
BlackRock, the world’s largest asset manager, stated in its latest report that the correction exceeding 50% in Bitcoin does not mean that the long-term investment thesis for the leading cryptocurrency has collapsed.
BlackRock stated that this correction was primarily due to delegitimization, changing market positions, a shift in capital from Bitcoin to AI-focused investments, weaker capital flows, and slower purchases of digital asset treasuries, adding that there was no change in Bitcoin’s long-term investment thesis.
BlackRock stated that a significant factor in the decline was the over $90 billion in open positions in crypto futures, with approximately 80% of that coming from perpetual futures contracts outside the CME.
BlackRock also stated that sales by digital asset treasury companies, particularly Strategy, and large Bitcoin holders increased market pressure and contributed to the decline. Net outflows from spot Bitcoin ETFs were also noted as increasing selling pressure on $BTC.
Despite all these drawbacks, BlackRock argues that its long-term investment thesis for Bitcoin remains unchanged. BlackRock states that Bitcoin, due to its limited supply and potential to behave differently from traditional financial assets, can be used as a portfolio diversification tool and a potential hedge against declining fiat purchasing power.
In conclusion, BlackRock argues in its latest report that the sharp drop in Bitcoin does not invalidate its long-term investment thesis, but rather signals a rebalancing of leverage and capital flows in the market.
*This is not investment advice.