Bitcoin plummets as markets keep an eye on 2026 for relief

Bitcoin’s plunge below $85,000 this week has sent a shudder through global cryptocurrency markets, erasing billions in value and reigniting concerns over the sector’s fragility.

- Issac John

Women flip pupusas, a typical dish of El Salvador, with the Bitcoin logo at the National Bitcoin Office of El Salvador in San Salvador.

(REUTERS)

The world’s largest digital asset, which only two months ago traded above $126,000, has now shed nearly one third of its value, dragging major altcoins down with it and triggering a broad risk-off shift among traders from Singapore to New York.

The selling has been swift and unforgiving. Trading volumes remain elevated, yet liquidity is thinning as investors retreat from leveraged bets.

Ethereum, Solana and BNB have followed Bitcoin’s slide, contributing to a market-wide wipeout of roughly $1 trillion since October.

Analysts say the rout has less to do with crypto-specific panic and more to do with global macroeconomic pressure — higher yields, delayed interest-rate cuts, and worsening growth expectations.

André Dragosch, head of research at Bitwise Asset Management in Europe, captured the mood bluntly: “Bitcoin is currently pricing in the most bearish global growth outlook since the 2022 FTX crisis or the Covid shock.” His assessment aligns with a surge in risk aversion as investors increasingly treat crypto like any other volatile asset class tied to the health of the broader economy.