BlackRock released its Re-Underwriting Bitcoin report following the asset's 50% price decline. The cryptocurrency peaked in October 2025 before the current sell-off.
The firm maintains that the price drop does not alter the fundamental long-term investment case. Analysts attribute the decline to a positioning correction rather than structural flaws.
This correction involved the unwinding of crypto-specific leverage and a slowdown in institutional inflows. Selling by large holders also contributed to the downward price pressure.
The report states that correlations between Bitcoin and stocks remain episodic rather than structural. BlackRock recommends a 1-2% Bitcoin allocation for diversified portfolios.
Investors should integrate this allocation into a traditional 60/40 investment model. They should fund the Bitcoin position from equities to potentially enhance long-term risk-adjusted returns.