Q1 2026 delivered a punishing -23.8% return, extending the correction from Q4 2025 and marking two consecutive negative quarters — the worst sequential drawdown since Q2–Q3 2022. After opening at $87,520, Bitcoin briefly rallied to a Q1 high of $97,008 (January 15) before declining to a low of $62,854 (February 6) — a 35.2% peak-to-trough drawdown. The quarter closed at $66,699.
The quarter was defined by an unprecedented convergence of headwinds: escalating US trade policy uncertainty, the outbreak of the US-Israel-Iran conflict (February 28) and closure of the Strait of Hormuz, persistent inflation delaying rate cuts, and cascading liquidations. Yet against this turbulence, Q1 also delivered some of the most significant structural developments in Bitcoin’s history — including the US Strategic Bitcoin Reserve executive order (March 6) and the SEC-CFTC joint classification of 16 cryptocurrencies as digital commodities (March 17).
As of April 13, 2026, Bitcoin has recovered to ~$70,659 — up approximately 5.9% from the March 31 close — bolstered by the landmark launch of Morgan Stanley’s spot Bitcoin ETF (MBST) on April 8.
The broader crypto market suffered even more severely. Ethereum declined approximately -30% in Q1, pushing the ETH/BTC ratio toward multi-year lows. Bitcoin dominance rose to 56.8%, reflecting relative resilience as altcoins bore the brunt of liquidations.[1]