Bitcoin’s support system broke in Q1 — and the buyers that used to hold it up stepped back

Bitcoin’s performance in the first quarter of 2026 was significantly impacted by a confluence of macroeconomic and geopolitical factors, resulting in a 24% decline in value. Initial expectations of support from ETFs, corporate buying, and a favorable US policy environment were undermined by rising oil prices, climbing yields, and geopolitical tensions. Institutional demand weakened, with Bitcoin ETFs experiencing net outflows and corporate treasury purchases slowing considerably, particularly outside of MicroStrategy. Bitcoin miners also contributed to selling pressure, liquidating holdings to manage costs and invest in AI infrastructure. Long-term holders engaged in measured selling, realizing losses but avoiding a full-scale capitulation. Derivatives markets reflected continued bearish sentiment, with negative funding rates and a high put-call ratio indicating traders were still positioned for further declines. The quarter highlighted Bitcoin’s increasing sensitivity to broader market conditions and the diminished capacity of traditional support mechanisms to counteract adverse pressures.

(Source：CryptoSlate)