Bitcoin's 22.3% Plunge Marks Worst Q1 Since 2018
Bitcoin is on track for its most challenging first quarter in eight years, with its price falling 22.3% since the beginning of 2026. The leading cryptocurrency started the year trading around $87,700 but has since shed approximately $20,000 to trade at current levels near $68,000. This performance marks the most significant Q1 loss since the 2018 bear market, when Bitcoin plummeted 49.7% over the same three-month period.
The current downturn is part of a volatile history for Bitcoin's first-quarter performance. Data from CoinGlass shows the asset has posted losses in seven of the last thirteen Q1 periods. Prior to this year, recent first-quarter declines included an 11.8% loss in 2025 and a 10.8% drop in 2020.
Asset on Pace for First-Ever Red January and February
This year's poor start is setting a negative historical precedent on a monthly basis. Bitcoin is poised to record its first-ever back-to-back losses in both January and February. The asset fell 10.2% in January and is already down 13.4% in February. To prevent a second consecutive red month, Bitcoin would need to reclaim the $80,000 price level before the end of February.
The negative sentiment is not isolated to Bitcoin. Ether, the second-largest cryptocurrency, is experiencing its third-worst first quarter on record, with losses currently standing at 34.3%. This synchronized downturn underscores a broader risk-off mood across the digital asset market.
Analysts View Decline as Correction, Not Breakdown
The sharp sell-off has led some market observers to characterize the current price action as a healthy correction rather than the start of a prolonged bear market. This perspective frames the decline as a necessary consolidation after previous gains.
While short-term pressures could intensify if macroeconomic headwinds persist, historical patterns show Bitcoin’s resilience often leads to strong recoveries in later months, particularly as institutional adoption and halving cycle dynamics continue to strengthen its potential.
— Nick Ruck, Director of LVRG Research.
This outlook suggests that despite the five consecutive weeks of losses, the asset's fundamental long-term trajectory remains intact. Investors are watching to see if Bitcoin's historical ability to recover in subsequent quarters will hold true once again.
