The first quarter of 2026 has ended on a somber note for cryptocurrency investors as major digital assets, Bitcoin and Ethereum, recorded significant losses, according to recent CoinGlass data. Bitcoin concluded the quarter with a -23.21% return, marking this period as its third-worst Q1 since 2013. Similarly, Ethereum saw a substantial drop of 32%, marking this as one of its least performing first quarters.
Amidst a broader bear market sentiment, these declines come in the wake of a series of crypto liquidation events that took place in the latter part of 2025. In October, the market witnessed liquidations that totaled around $19 billion following a sharp market downturn. Bitcoin's value tumbled from its October peak of $126,080 to approximately $66,000, registering a near 48% fall. This recent downturn has concluded with Bitcoin and Ethereum posting back-to-back quarterly losses, following the market's peak in October 2025.
The negative returns in Q1 2026 stand in stark contrast to historical Q1 performance averages, with Bitcoin's past first-quarter returns hovering around 45.90%. Similarly, Ethereum's historical Q1 performances have been generally positive. These declines underscore the increased volatility within the crypto markets in recent years and signal cautious sentiment among retail investors as the industry navigates through the current bear market cycle.
