This answer is a bit late, but the problem has quite an elegant solution based on the Fourier transform and I wanted to add it. The action of the BSC can be modeled as a$\pmod 2$ sum of the data bit, $X$, and a random noise bit, $N$, who's probability distribution is $P(N=1)=p$ and $P(N=0)=1-p$, $$Y = X \oplus N.$$ The distribution over $Y$ (the output) is the conditional distribution $P(Y|X,N)$ that is a [convolution of the quantities][1] $P(X)$ and $P(N)$, $$P(Y=y) = \sum_{x \in \{0,1\}} P(X=x)P(N=x\oplus y).$$ This is a linear transformation of the probabilities. The circulant correlation matrix obtained from one of the vectors is diagonalized by the 2x2 DFT *Hadamard* matrix, $$H = \begin{bmatrix} 1 & 1 \\ 1 & -1 \end{bmatrix},$$ and the convolution becomes a product of spectra in the transform domain. The sum of $L$ identically distributed noise bits corresponds to exponentiation in the transform domain followed by an inverse transform, $$H^{-1}\left(H\begin{bmatrix}1-p\\p\end{bmatrix}\right)^L = \frac{1}{2}\begin{bmatrix}{(1 - 2p)^L}\\{1 - (1 - 2p)^L}\end{bmatrix}.$$ [1]: https://en.wikipedia.org/wiki/Convolution_of_probability_distributions