Bitcoin Loses 22 Percent in First Quarter as Cryptocurrency Faces Worst Start Since 2018 Amid Global Market Uncertainty

Bitcoin (BTC) has had a rough start to 2026, already down 22.3% since the beginning of the year.

Trading around $87,700 at the start of January, it has tumbled roughly $20,000, hitting lows near $68,000.

If this trend continues, it could mark the worst first quarter for Bitcoin since the 2018 bear market, which saw the cryptocurrency drop nearly 50% in just three months, according to CoinGlass.

Analysts are emphasizing that Q1 has historically been volatile for Bitcoin.

“The first quarter of the year is known for its volatile nature,” said Daan Trades Crypto, noting that early-year drops don’t necessarily indicate longer-term performance.

Bitcoin has seen negative first-quarter returns seven times in the past 13 years, with notable declines in 2025 (-11.8%), 2020 (-10.8%), and the record-setting drop in 2018 (-49.7%).

January and February in the Red

Adding to the concern, Bitcoin is poised for its first-ever consecutive January and February losses.

January closed down 10.2%, while February is currently down 13.4%.

Analysts note that BTC would need to reclaim $80,000 soon to avoid a negative February finish.

Comparatively, Ethereum (ETH) has historically fared better, though the current quarter is shaping up as its third-worst Q1 ever, with losses of 34.3% so far.

BTC and ETH’s declines reflect wider market corrections rather than systemic collapses in the crypto sector.

Correction or Crisis?

Despite the decline, experts urge caution before sounding alarms.

Nick Ruck, director of LVRG Research, told Cointelegraph that the recent BTC slump is a “regular correctional phase” rather than a structural failure.

He emphasized that institutional adoption, halving cycle dynamics, and historical recoveries often set the stage for strong rebounds later in the year.

Bitcoin has now entered its fifth consecutive week of losses, slipping another 2.3% in the past 24 hours to trade around $68,670, according to CoinGecko.

Investors are watching closely, weighing the influence of macroeconomic headwinds, rising interest rates, and global uncertainty on the cryptocurrency’s performance.

Historical Context: Bitcoin’s Volatile First Quarters

Looking back, Bitcoin has only experienced two consecutive losing first quarters—in 2018 and 2022.

While these periods coincided with bear markets, BTC historically shows resilience later in the year.

Analysts point out that early-year weakness often sets up opportunities for strong rebounds in Q2 and beyond.

What’s Next?

Market watchers are monitoring whether Bitcoin can reclaim the $80,000 mark to stabilize February.

Investors should also keep an eye on macro conditions, regulatory news, and institutional interest, all of which may influence BTC’s trajectory.

Corrections like this are often temporary, with recovery potential linked to broader adoption and halving cycles in the cryptocurrency market.

Summary

Bitcoin has fallen 22.3% in Q1 2026, dropping from $87,700 to around $68,000, marking its worst first quarter since 2018.

January and February may close consecutively in the red for the first time in history.

Experts describe the slump as a correctional phase rather than a structural collapse, with BTC’s historical resilience suggesting potential recovery in later months.

Ethereum has also experienced losses, with Q1 2026 becoming its third-worst first quarter ever.

Analysts urge close monitoring of market conditions, institutional adoption, and macroeconomic trends to gauge Bitcoin’s short-term outlook.