The world’s largest asset manager, BlackRock, entered the cryptocurrency sector in January 2024 via an ETF after receiving approval from the US Securities and Exchange Commission (SEC). The firm manages assets worth $14 trillion, making it the largest financial entity in the world. Its entry into Bitcoin and Ethereum ETFs bolstered its prices, making it reach new highs. Things are not the same in 2026, as the market is under the bearish claws.

However, Bitcoin and Ethereum are facing severe volatility in 2026, with little to no price spurts. The broader cryptocurrency market is mostly underperforming, and BlackRock is now a part of the downturn. Bitcoin, which had reached a high of $126,080 in October last year, is now struggling in the $70,000 range. Its price is unable to climb above the $85,000 level and is repeatedly moving from $65,000 to $75,000.

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BlackRock’s Cryptocurrency Portfolio In the Red

According to the latest data from Arkham Intelligence, BlackRock has lost $13.83 billion in its cryptocurrency portfolio in 2026. The investments are down 17.65% year-to-date, which includes all the crypto portfolio ranging from Bitcoin and Ethereum, among others. The decline is largely due to the bear market, where digital assets are facing the brunt of the rising oil prices and the uncertainty of the Middle East conflict. The Asian markets are already paying a heavy price after the US-Iran war broke out.

Bitcoin has fallen by over $17,210 in 2026, making the decline a steep cut. A quick recovery from here is not supported by the global macroeconomic factors. Therefore, BlackRock’s cryptocurrency portfolio could see more downturns as the turbulence is likely to continue. The reason for the bear market to continue is that the US and Iran found no breakthrough in peace talks on Tuesday. This adds more pressure on the markets, leaving little room for a bullish case.