Bitcoin tested $65,000 on Tuesday, touching an intraday high of $65,058 before pulling back to around $64,708. The push higher came the same week BlackRock reaffirmed its 1-2% bitcoin allocation recommendation, arguing the recent selloff was driven by forced selling in crypto markets rather than a weakening long-term case. Together, the price bounce and the asset manager's steady stance suggest institutions aren't abandoning the asset — even with bitcoin sitting roughly 50% below its October 2025 peak.
BlackRock's refreshed 10-year call
BlackRock updated its 10-year portfolio analysis this week and kept the allocation guidance unchanged: 1-2% in bitcoin. The firm's reasoning is that the drawdown came from forced selling, not from a deteriorated fundamental outlook. That's a notable stance given where prices are. It's also a direct rebuttal to any read that the selloff changed the long-term math.
IBIT's pipeline is rebuilding
BlackRock's own numbers tell part of the story. The iShares Bitcoin Trust held over $47 billion in assets as of March 2026. Client buying rebounded in late July, even with the average US spot ETF buyer sitting about 22% underwater on their position. That rebound points to fresh allocations rather than existing holders simply averaging down — a meaningful distinction for anyone tracking whether the ETF channel still works as an entry point.
Citi enters the custody race
Citi unveiled Custody+, a platform that lets clients hold traditional assets and crypto in one setup, with bitcoin custody scheduled to launch later this year. The bank spends over $2 billion annually on its platform strategy, and its custody network already spans more than 100 markets. This isn't a small experiment — it's a product line built on existing infrastructure. The move also puts Citi in direct competition with the banks that have been quietly building bitcoin services.
Who's ahead on the banking index
Fidelity currently leads Strategy's Bitcoin Banking Adoption Index, which ranks how far major banks have moved into bitcoin. Citi's Custody+ launch will likely shake up that ranking once bitcoin custody goes live. Fidelity's lead reflects its early push into the space, but Citi's reach — over 100 markets — is a different scale of distribution.
Citi's bitcoin custody goes live later this year, which will give the market its first real look at how a top-tier bank handles crypto alongside traditional assets. Until then, the open question is whether Tuesday's $65,000 test holds or fades like previous bounces in a market still off its peak.
