Bitcoin closed the primary quarter of 2026 at $66,619, down 23.8% from $87,508 on January 1 — its worst Q1 efficiency since 2018, when it fell 50% from $14,112 to $6,973.
A brutal six months
The Q1 drop extends a painful stretch that started in This fall 2025, when bitcoin slid 23% from $114,057 to $87,508.
Mixed, bitcoin has shed roughly 41.6% of its worth over the previous six months, falling from its October 2025 all-time excessive.
The broader crypto market pulled again alongside conventional equities, with escalating geopolitical tensions within the Center East weighing closely on investor sentiment.
ETF outflows added stress
Analysts pointed to a reversal in U.S. bitcoin ETF flows as a key driver of the decline.
Spot bitcoin ETFs noticed $496.5 million in web outflows throughout Q1, with $1.8 billion leaving within the first two months earlier than $1.32 billion returned in March.
Andri Fauzan Adziima, Analysis Lead at Bitrue, stated the Q1 decline was pushed “primarily by” ETF outflows, coupled with sticky inflation, a cautious Fed, and broader risk-off sentiment.
Lengthy-term conviction stays
Regardless of the selloff, analysts say the basic case for bitcoin stays intact.
Min Jung, analysis affiliate at Presto Analysis, acknowledged:
“There may be restricted proof of a structural shift in long-term conviction round bitcoin. Institutional participation and adoption traits stay intact, suggesting the transfer has been extra cyclical than basic.”
Nick Ruck, Analysis Director at LVRG, stated reversing the pattern in Q2 would require renewed ETF inflows, clearer progress on crypto-friendly U.S. rules, and a shift towards simpler financial circumstances.