According to Coinbase’s Q2 2026 crypto report, produced in partnership with Glassnode, the cryptocurrency market is expected to bottom out soon.
Notably, in the first quarter of 2026, the global market capitalization of cryptocurrencies fell by 18%. At the same time, the stablecoin market grew from $308 billion to $318 billion.
That said, around 70% of non-institutions and 82% of institutions ranked the crypto market as:
Either the bear market (markdown) or the late phases of the bear market.
While this may seem worrying at first glance, it is a considerable jump from the December 2025 rates of 1% and 36% respectively.
Price Summary: Bitcoin and Ethereum
After reviewing the sentiment surrounding the price front, most investors consider Bitcoin (BTC) to be “undervalued,” given current price levels.
Simply put, according to institutions, current price action does not fully reflect future demand for the asset.
This coincided with Bitcoin trading at $77,057.04 at press time, up more than 13% over the previous 30 days. While Spot Bitcoin ETF saw inflows worth $2.135 billion in the month of April alone.
On the other hand, since the start of the second quarter of 2026, the sentiment around Ethereum (ETH) has transformed into “hope”.
This implies that the market may have been rid of some players who were only engaged in speculation. This follows the ETH price trading at $2,324.01 at press time, up 12% from the previous month.
In light of all this, the report claims that the outlook for cryptocurrency markets in the second quarter of 2026 is “neutral”.
What to expect next?
Coming full circle, it is certain that geopolitical tensions in the Middle East were the main event that affected the performance of the crypto market in the first quarter of 2026.
However, other “idiosyncratic factors,” such as regulatory developments, notably those related to the CLARITY Act, and the emergence of agentic AI, have also had a significant impact on the crypto market.
Interestingly, Goldman Sachs also predicted some time ago that the cryptocurrency market may have bottomed out.
Simply put, this indicates that a recovery is likely to occur in the latter quarters of 2026. However, as long as the Crypto Fear and Greed Index remains in the “fear” zone, skepticism will continue to swirl.
Final summary
- The crypto market endured volatility in the first quarter of 2026, losing 18% in capitalization even as stablecoins expanded.
- Despite ongoing geopolitical and regulatory pressures, institutional sentiment suggests the market may be near its lowest level.
