BlackRock views Bitcoin’s more than 50% decline from its $126,200 all-time high as a « positioning correction » rather than a change in its investment case. The asset manager highlights that the market was historically overleveraged, with open interest exceeding $90 billion in early October, triggering cascading liquidations that pushed prices below $60,000 by June 2026. U.S. spot Bitcoin ETF outflows totaled $267.2 million for the week, including $78.9 million from BlackRock’s own IBIT. The report forecasts that Bitcoin’s correlation with risk assets will normalize lower, although its 12-month realized volatility remains at 40%, compared to 26% for gold and 12% for the S&P 500.
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