Bitcoin’s price is down nearly 50% from its October record, but investors should not be concerned, according to BlackRock, the world’s largest asset manager, which says the cryptocurrency still serves as “a global monetary alternative.”

In a report published Monday, Robert Mitchnick, BlackRock’s global head of digital assets, said the continued rise in U.S. and global government debt and deficits has not slowed. BlackRock has long argued, alongside other Bitcoin proponents, that the largest cryptocurrency can serve as a hedge against governments printing money.

JUST IN: $15 trillion BlackRock reports they're still bullish on Bitcoin despite the -50% decline from its all time high "bitcoin’s core investment case as an important emerging global monetary alternative and unique portfolio diversifier remains unchanged." pic.twitter.com/lL2tWQ6iZr — Bitcoin Magazine (@BitcoinMagazine) August 18, 2026

The report said there appears to be no credible path for fiscal consolidation, adding: “With no credible path for consolidation on the horizon, these fiscal dynamics reinforce the strategic case for assets with supply constraints beyond the discretion of central banks, governed by geology in the case of gold and mathematics and code in the case of bitcoin.” The reference to “mathematics and code” points to Bitcoin’s protocol, which caps total issuance at 21 million coins — a fixed supply schedule set by the network’s rules rather than by any central authority, in contrast with fiat currencies that central banks can expand.

BlackRock also said Bitcoin has been volatile throughout its 17-year history, but argued that investors should not be deterred by that price behavior. “And while bitcoin remains inherently volatile, its volatility has trended lower over the past decade as market structure has matured, supported by the growth of derivatives markets and the expansion of and exchange-traded products,” the report noted.

The firm said Bitcoin still deserves a place in portfolios because of its potential for uncorrelated returns — the argument being that an asset whose performance does not move in lockstep with stocks and bonds can serve a diversification role that traditional asset classes cannot replicate.

The U.S. Securities and Exchange Commission approved BlackRock’s iShares Bitcoin Trust (IBIT) in January 2024, part of a broader wave of spot Bitcoin ETF approvals that made the cryptocurrency accessible through ordinary brokerage and advisory platforms. Among Bitcoin ETFs, BlackRock’s product has been the most successful, drawing the most investment and trading volume.

BlackRock has previously said Bitcoin is in an asset class of its own and that investors are buying it as a hedge against possible debt crises. Taken together, the new report ties Bitcoin’s long-term investment case to the trajectory of government finances rather than to its recent drawdown from record levels.

Bitcoin recently traded at $64,713, up nearly 2% over the past 24 hours but flat over the previous 30 days. The asset is down 27% year to date and has fallen nearly half from its all-time high of $126,080 last year.