In the first quarter of 2026, the cryptocurrency market faced severe challenges. The price of Bitcoin dropped from its New Year high of $87,000 to around $66,000 by the end of the quarter, a decline of over 20%, marking the worst quarterly performance since 2018.

Although nearly $2 billion worth of Bitcoin flowed out through over-the-counter channels in the first two months, the market reversed in March. Data from DefiLlama shows that $1.3 billion was reinvested.

At the same time, geopolitical tensions did not completely stifle innovation in the industry. Platforms such as Kalshi raised $1 billion, and Polymarket secured $600 million, indicating that the market demonstrated resilience amidst uncertainty.

There were also regulatory developments: the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission reached a new agreement aimed at resolving long-standing jurisdictional disputes and coordinating regulatory policies.