 ▲ Bitcoin (BTC) |
Bitcoin (BTC) is leading a downturn across the broader digital asset market after posting its fourth-worst first-quarter performance since 2013.
According to cryptocurrency media outlet The Crypto Basic on March 2 (local time), Bitcoin began the year trading at $87,700 but fell about 22% during the first quarter, sliding to around $66,000. Data from digital asset analytics platform CoinGlass shows that the first-quarter decline of 2026 ranks as the fourth largest in Bitcoin’s history, following drops of -49.7% in 2018, -37.42% in 2014, and -24.14% in 2015. The downturn is interpreted as the result of combined macroeconomic pressures, including outflows from spot Bitcoin ETFs and the continuation of high interest rates.
Risk-off sentiment spreading across the market is engulfing not only Bitcoin but also the altcoin sector. Ethereum (ETH) lost about 34% of its value in the first quarter, marking its third-worst start on record. Major digital assets, including XRP, have moved in tandem with Bitcoin’s decline, while the total market capitalization of the crypto market has shed trillions of dollars from its peak. The Fear and Greed Index, a gauge of investor sentiment, indicates extreme fear, clearly reflecting investor anxiety.
Technical analysts warn that Bitcoin’s five consecutive weeks of losses signal more than a simple price correction. Historically, prolonged downward trends in Bitcoin have coincided with structural reshuffling within the market. Currently, Bitcoin is testing a key support zone between $65,000 and $68,000. If the $60,000 support level collapses, concerns are mounting that panic selling among retail investors could accelerate, deepening the decline.
However, some experts argue that the weak first quarter resembles temporary pullbacks seen before previous halving events. According to data from Santiment and others, whale investors have continued accumulating despite falling prices, while open interest in the derivatives market is undergoing a healthy adjustment as excessive leverage is flushed out. Market participants are watching closely to see whether history will repeat itself, as in 2015 and 2020, when sharp first-quarter corrections were followed by explosive rallies in the second half of the year.
The digital asset market is enduring a harsh trial at the start of 2026 as it searches for a new bottom. Major assets led by Bitcoin are focusing on defending key price levels amid macroeconomic uncertainty and tight liquidity conditions. Market participants are formulating response strategies, viewing changes in Federal Reserve monetary policy and the resumption of institutional capital inflows as key variables that will determine the recovery of the crypto ecosystem.
Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.