Bitcoin closed the second quarter of 2026 at its lowest point and longest since the last bear market, according to Bitwise Asset Management’s. has just been released Q3 2026 Crypto Market Review.
However, the $9 billion crypto asset manager sees pain as a launch rather than a collapse, arguing that the industry has never been more stable on the ground.
Bitcoin fell 13.4% in Q2 and is down 32.9% for the year, falling below $60,000 in June for the first time since 2024 and landing nearly 52% below October. tip and $126,080. This extends what Bitwise calls “crypto winter” to nine months and marks the third straight period of negative returns for the Bitwise 10 Large Cap Crypto Index, the longest losing streak since 2022.
Chief Investment Officer Matt Hougan doesn’t like it, writing that “the vibes in crypto are some of the worst I’ve seen in my eight years in the industry.”
Despite this, bitcoin has fared better than many of its peers. Its 32.9% year-to-date drop was the deepest drop among major tokens, easily beating Ethereum’s 46.9% slide, Solana’s 40.6% and Cardano’s 56.5%.
Bitcoin now commands a 64.2% share of the nearly $1.88 trillion crypto market and carries a 77.4% weight in the Bitwise 10 index, cementing its position as a relative safe haven even in a broad selloff.
Bitcoin ETF outflows have fallen in price
The most surprising number of this quarter came from the trading activities that have established the bitcoin era. US spot bitcoin ETPs lost $4.9 billion in Q2, their worst quarter since they were launched in January 2024, according to Bitwise.
Assets under management are still at $72.4 billion, an increase of $53.4 billion since inception, but this change shows how quickly expert opinion can be disappointed.
Records show financial advisors own about 43% of ETP shares held by professionals and hedge fund managers another 28%, Jane Street ($1.8 billion) and Millennium ($1.0 billion) have the largest portfolios.
Design demands continued to produce new innovations. Bitwise noted in their report that ETPs and public companies have bought about 3.6 times bitcoin since the ETF’s inception – about 1.55 million BTC worth versus just 455,416 BTC for new ones.
The financial industry is still buying, but Strategy is watching
Government companies bitcoin assets grew 1.28 million BTC, 11.3% quarter on quarter and equal 6.11% of 21 million cap, although the number of companies holding bitcoin decreased by three to 184. Companies added 130,467 BTC in Q2. The way still the runaway leader at 846,842 BTC, followed by XXI (43,514), Metaplanet (40,177), MARA Holdings (35,303) and Bitcoin Standard Treasury Company (30,021).
The most crowded move was for Strategy, which sell bitcoins for the first time since 2022 – download $218 million late in the quarter to pay dividends while maintaining $52.3 billion in cash and $2.55 billion in cash. The fall in prices punished the funds: Strategy stock (MSTR) fell 30.3% in Q2 and 42.8% year to date, making it one of the worst performers among crypto equities.
The report also covered a number of developments that are also changing the bitcoin market pipeline. The CFTC approved permanent bitcoin futures on US-regulated exchange Kalshi, pulling major crypto derivatives ashore.
Charles Schwab he started BTC trading platform, and E*Trade expanded access to its 8.6 million users. In terms of oversight, the CLARITY Act market stalled in the Legislature on social media, with markets predicting a 2026 rate hike of about 20%, down from 75% in May.
Bitwise says that if CLARITY passes it could be down, and if it fails, companies continue to build under friendly regulators.
Hougan’s main argument is one of circularity. Bitcoin’s seasonal data offer less optimism, with July’s historic gain of 10.7%.
And the company’s strong performance still shows a 5% bitcoin Dividend and increases the traditional mix of 60/40 in 100% of the three-year windows since 2014.
“The market is quoting bear market prices for companies that are doubling their last size,” says Hougan — the foundation, he says, “knows what’s growing in the year.”
Bitcoin is trading below $62,000 today.
