Bitcoin has fallen more than 50% from its October 2025 record high near $126,000, remaining below that peak for 275 days.
Bitcoin ended the first half of 2026 near $60,000 after falling about 32% since January, Binance Research reported. Its Half-Year 2026: Macro & Bitcoin report described the decline as a third consecutive quarterly loss across broader financial markets worldwide.
The weak first-half performance also extended Bitcoin’s longer-term drawdown. According to the report, the asset has fallen more than 50% from its October 2025 record high near $126,000. It has also spent 275 days below that peak, underscoring the depth and persistence of the current market downturn.
On-Chain Data Signals Market Stress
On-chain data showed 10.83 million BTC ended the period in unrealized loss, while 9.22 million units remained profitable instead. Binance Research said this marked the first loss-over-profit crossover during the current market cycle, making conditions important for analysts.
The researchers noted similar crossovers have historically appeared near major Bitcoin market bottoms before stronger recoveries eventually followed. However, they cautioned that historical patterns alone cannot confirm the current cycle will produce the same outcome.
Beyond the on-chain signals, Binance attributed Bitcoin’s weak performance mainly to broader macroeconomic conditions rather than crypto-specific developments. The report said markets shifted from liquidity-driven expectations toward economic fundamentals as monetary policy remained restrictive throughout the first half of 2026.
Expectations for interest rates also changed as hopes for aggressive cuts faded. Futures markets instead reflected an 80% probability of another Federal Reserve rate increase before December, adding pressure across financial markets.
Macro Pressures Weigh on Bitcoin
The report also said higher real yields, a stronger U.S. dollar, and tighter liquidity continued to weigh on Bitcoin. While technology stocks rebounded on optimism around artificial intelligence, BTC lagged behind many major asset classes during the same period.
A resilient U.S. economy also reduced expectations that the Federal Reserve would cut interest rates soon. Binance Research said artificial intelligence was a key driver of first-quarter economic activity. At the same time, core PCE inflation rose to 3.4%, its highest level since late 2023, reinforcing concerns that price pressures remain stubborn.
That backdrop also weakened demand for crypto. U.S. spot Bitcoin ETFs recorded $5.4 billion in net outflows during the first half of the year.
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