Bitcoin has undergone a severe downward repricing, crashing by more than 40% during the first quarter of 2026. The decline was triggered by a 'perfect storm' of three major global liquidity drains that hit the market simultaneously. Key drivers include the unwinding of the Yen carry trade, the rebuilding of the US Treasury General Account (TGA), and a significant hike in margin requirements. According to an analysis by HTX, macroeconomic factors have now taken full control over the pricing mechanisms of digital assets. This structural shift suggests a prolonged period of volatility and downward pressure for the broader cryptocurrency sector. Market participants are now bracing for further impacts as global financial conditions continue to tighten and affect risk appetite.
Get AI-powered deep analysis for every story with a paid subscription
Upgrade for Analysis