BlackRock calls Bitcoin's 50% pullback a positioning correction, not a structural break

BlackRock said Bitcoin’s roughly 50% decline from its $126,000 peak to near $60,000 was a positioning-driven correction, not a breakdown in fundamentals. The firm blamed excessive leverage in perpetual futures, long-term holder rebalancing around the $100,000 level, and shifting Federal Reserve rate expectations. It also said cooling enthusiasm for corporate Bitcoin treasury strategies added pressure. Separately, the article noted US spot Bitcoin ETFs saw $6.4 billion in outflows over 30 days, including a $696.3 million one-day withdrawal, while long-term holders realized about $2.4 billion in losses. Despite the selloff, BlackRock reiterated its bullish long-term thesis based on institutional adoption, regulatory support, fixed supply, and Bitcoin’s diversification role. The market takeaway is that Bitcoin’s weakness is being framed as a leverage and flow reset, potentially setting up a more durable base if outflows and macro pressure ease.