S&P 500 · Bitcoin · Bitcoin ETF · China · Cointelegraph
Bitcoin has ‘largely purged’ froth that preceded 50% drop from $126K: BlackRock
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Bitcoin maintained its appeal as a diversification investment despite dropping more than 50% from all-time high, a BlackRock report stated.
Key facts
- BlackRock’s iShares Bitcoin Trust (IBIT) saw net outflows of $78.9 million in the week through Aug. 14
- Bitcoin (BTC) falling more than 50% from its $126,200 all-time high was a “positioning correction,” BlackRock says
- Further data puts Bitcoin’s 12-month realized volatility at 40% compared to 26% for gold and 12% for the S&P 500
- The team view bitcoin’s ~50% pullback from October 2025 highs as a positioning correction rather than a change in its investment case
Summary
Bitcoin (BTC) falling more than 50% from its $126,200 all-time high was a “positioning correction,” BlackRock says. A BlackRock report attributes Bitcoin’s decline below $60,000 to cascading liquidations as leverage was purged from the market. The long-term BTC investment thesis as a “low-correlation diversifier” remains intact, analysts confirm. In a report published this week, the world’s largest asset manager preserved its bull thesis despite waves of outflows from its spot Bitcoin exchange-traded fund (ETF) in 2026.