Bitcoin is on course to record one of its most disappointing first-quarter performances in recent memory after shedding roughly 25% of its value since the start of the year.
The world’s largest cryptocurrency began 2026 trading around $88,000 but is now battling to hold above the $67,000 threshold, reflecting persistent downward pressure and heightened volatility. As of Tuesday’s trading session, Bitcoin was hovering just below $67,000, with momentum clearly tilted to the downside.
With an estimated market capitalisation of approximately $1.33 trillion at the time of reporting, Bitcoin remains the dominant digital asset. However, recent price swings and declining trading activity underscore growing investor caution. Over the past 24 hours, trading volume fell by about 15% to $32.3 billion, suggesting reduced conviction among short-term participants.
Macro Headwinds and Profit-Taking Drive Sell-Off
Market analysts attribute the correction to a combination of macroeconomic uncertainty and aggressive profit-taking following last year’s rally. Since peaking at approximately $127,000 in October, Bitcoin has entered what traders describe as a divergent and corrective phase.
Global economic instability, fluctuating interest rate expectations, and capital rotation across asset classes have dampened enthusiasm for risk assets, including cryptocurrencies. Additionally, Wall Street’s so-called “TACO” trade dynamics — reflecting tactical capital allocation amid shifting macro signals — have contributed to volatility in digital asset markets.
Bitcoin has struggled to reclaim the $70,000 psychological level in recent sessions, with price action reflecting persistent resistance. Technical analysts note that the current chart structure leans bearish, echoing patterns observed during prior corrective cycles.
Echoes of the 2018 Downturn
Some crypto market observers have drawn parallels between the current trajectory and the sharp retracement seen in 2018, when Bitcoin’s value fell by roughly half during a prolonged downturn.
The present environment, however, presents a more complex structure. Bitcoin is caught between ongoing corporate accumulation strategies and a broader institutional pullback. While certain long-term buyers remain active, large-scale institutional flows appear more cautious compared to the previous bull phase.
The back-to-back weakness recorded in January and February has unsettled traders and long-term holders alike, placing the first quarter of 2026 on track to enter unfamiliar territory for the crypto market.
If current momentum persists, Bitcoin could close Q1 with one of its steepest quarterly declines in years, reinforcing concerns about broader risk appetite across global financial markets.
