Bitcoin plunges 24% in the first quarter, its worst performance since 2018

Gate News report: In the first quarter of 2026, Bitcoin fell 23.8%, marking its worst quarterly performance since 2018. According to data from Yahoo Finance, on Tuesday Bitcoin closed at $66,619, down from $87,508 on January 1, with its market value having suffered a cumulative loss of about 41.6% over the past six months. Analysts said macroeconomic uncertainty and heightened geopolitical tensions in the Middle East were the main factors behind the price drop.

ETF fund flows have also added pressure on Bitcoin. Data from SoSoValue shows that in Q1 spot Bitcoin ETFs saw net outflows of $496.5 million. In the first two months alone, outflows reached as high as $1.8 billion, while inflows of $1.32 billion in March partially offset the impact. Andri Fauzan Adziima, research head at Bitrue, said the decline was driven by a combination of ETF fund outflows, persistently high inflation, the Federal Reserve’s cautious policy stance, and risk-averse sentiment in the market.

Despite near-term pressure, long-term confidence remains solid. Min Jung, a researcher at Presto Research, said there is currently virtually no evidence that Bitcoin’s long-term confidence has undergone a structural change. Institutional participation and adoption trends remain steady, suggesting the price drop is more of a cyclical adjustment rather than deterioration in fundamentals. Nick Ruck, research director at LVRG, added that to reverse the downward trend in the second quarter, it will be necessary to see ETF funds return to inflows, crypto-friendly regulation take effect, and the monetary environment move toward easing.

The market is watching developments in the Middle East. Trump announced that even if the U.S.-Iran agreement is not reached, the conflict could end within two to three weeks, but Iran is still attacking neighboring Gulf countries. Investors believe that further easing or escalation of tensions in the Middle East will directly affect overall market sentiment toward Bitcoin and cryptocurrencies. Recent price fluctuations show that Bitcoin rebounded slightly by 2.5% over the past 24 hours to $69,116, but the overall trend still needs to be monitored for developments in macroeconomic and geopolitical factors. (The Block)