The sharp decline in Bitcoin's rate from its historical high has led to a massive outflow of funds from the entire crypto market. The total capitalization of digital assets has decreased by approximately $2 trillion from the peak level recorded in early October. Reuters reports.
The Bitcoin crash in 2026: What is happening in the market
On Thursday, Bitcoin dropped to $62,500, which is the lowest level since October 2024. Over the week, the first cryptocurrency lost 11%, and since the beginning of the year, it has fallen by 23%.
According to CoinGecko, about $800 billion has disappeared from the crypto market in the last month alone. The second largest cryptocurrency, Ethereum, has declined by more than 7% to $1,973. Over the week, it has lost nearly 14%, and about 34% since the beginning of the year.
The crypto market crash: Key pressure factors
Analysts link the decline in cryptocurrencies to the overall deterioration of sentiment in the financial markets. Volatility in the precious metals market and the sell-off of tech stocks have intensified pressure on risk assets.
Among the key factors:
- the drop in the S&P 500 and Nasdaq indices against the backdrop of waning interest in the technology sector
- expectations of tighter monetary policy in the U.S.
- outflows from exchange-traded funds investing in Bitcoin
An additional negative signal for the market has been discussions of a potential reduction in the Federal Reserve's balance sheet. Experts note that cryptocurrencies traditionally benefited from excess liquidity, and its tightening does not create favorable conditions for growth.
Deutsche Bank reported that in January alone, American spot ETFs on Bitcoin recorded outflows exceeding $3 billion. Analysts indicate that this trend reflects a decline in interest from traditional investors and a rise in pessimism about the market's prospects.
Earlier, we presented the top 5 crypto exchanges for Ukrainians in 2026.