# Bitcoin Price Down 41% From Peak, BlackRock Sees Long-Term Value

**Published:** 2026-08-18T17:40:55.729Z  
**Topic:** Bitcoin  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/c9f93828-0b8c-4b66-9f1c-1aaeb14141cb

Bitcoin trades 41% below its October all-time high, but BlackRock maintains its long-term conviction, citing network growth and a role as a global monetary

Bitcoin's price has fallen nearly 50% since its October all-time high of $126,080, trading recently at $64,713 [1]. Despite this volatility, BlackRock, the world's largest asset manager, stated in a recent report that the cryptocurrency retains its role as a "global monetary alternative" and deserves a place in investor portfolios for uncorrelated returns [1].

| At a glance | |
|---|---|
| Current Price | $64,713 [1] |
| 24-Hour Change | Up nearly 2% [1] |
| 30-Day Change | Flat [1] |
| Year-to-Date Change | Down 27% [1] |
| From All-Time High | Down 41% from October peak [2] |
| Catalyst | BlackRock report on long-term strategic value [4] |

## Price Action and Market Context

Bitcoin's recent price of $64,713 marks a 41% decline from its all-time high last October [1, 2]. The asset is down 27% year-to-date and has been flat over the past 30 days, though it saw a nearly 2% increase over the past day [1]. This downturn coincides with the S&P 500 index rising 13% over the same period [2]. BlackRock's iShares Bitcoin Trust, approved by the SEC in January, has been the most successful Bitcoin ETF, attracting significant investment and trading volume [1].

## Factors Influencing Bitcoin's Performance

BlackRock attributes Bitcoin's recent volatility to several factors, including shifts in the Federal Reserve's outlook on rate cuts, which have pushed real yields higher [3]. Expectations for slower Fed rate cuts increased from a 30% chance of one or fewer cuts in October to a 46% chance by early December for the March 2026 meeting [3]. Bitcoin has historically shown sensitivity to USD real rates, similar to gold [3].

Other contributing factors include the unwind of excessive leverage in cryptoasset trading, which amplified short-term speculation and led to a "flash crash" on October 10, erasing over 30% of futures open interest [3]. Additionally, some long-term Bitcoin holders, or "whales," with low cost bases, began rebalancing their portfolios as Bitcoin crossed the $100,000 psychological milestone, adding selling pressure [3]. The unwind of optimism around digital asset treasury companies, whose shares now trade near or below the net asset value of their Bitcoin holdings, also removed a source of buying pressure [3].

Despite these pressures, BlackRock emphasizes Bitcoin's long-term strategic value, citing its network growth profile as one of the fastest in modern technology cycles [4]. The firm notes that Bitcoin surpassed 300 million global users approximately 12 years after launch, outpacing mobile phones and the early internet [4]. BlackRock's global head of digital assets, Robert Mitchnick, highlighted the ongoing rise in U.S. and global government debt and deficits, reinforcing the case for assets with supply constraints like Bitcoin, which is governed by mathematics and code [1].

## What to watch

*   **Federal Reserve interest rate decisions:** Continued shifts in expectations for rate cuts could influence Bitcoin's sensitivity to USD real rates [3].
*   **Institutional investment flows:** Monitor investment and trading volumes in Bitcoin ETFs, particularly BlackRock's iShares Bitcoin Trust, for signs of sustained institutional demand [1].
*   **On-chain whale activity:** Observe large-wallet movements for further rebalancing or accumulation trends, especially around key price levels [3].

BlackRock's sustained conviction in Bitcoin's long-term relevance, despite its recent price stagnation and inherent volatility, positions it as a structural theme driven by adoption curves and the declining credibility of legacy monetary systems [4].

## Sources
1. Bitcoinmagazine — [Bitcoin Is Down But Asset's Role As Global Monetary ...](https://bitcoinmagazine.com/news/bitcoin-role-in-portfolio-blackrock)
2. The Motley Fool — [Bitcoin Is Down 41% From Its All-Time High: What History Says Happens Next](https://www.fool.com/investing/2026/06/01/bitcoin-down-all-time-high-what-history-says/)
3. Blackrock — [Four factors behind bitcoin's recent volatility | BlackRock](https://www.blackrock.com/us/financial-professionals/insights/exploring-crypto-volatility)
4. Cryptoslate — [BlackRock doubles down on Bitcoin's future amid price stagnation](https://cryptoslate.com/why-blackrock-remains-bullish-on-bitcoin-despite-recent-price-slowdown/)

---
Cite as: TrendWatcher, "Bitcoin Price Down 41% From Peak, BlackRock Sees Long-Term Value", https://www.trendwatcher.in/article/c9f93828-0b8c-4b66-9f1c-1aaeb14141cb