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Bitcoin’s bear market could extend through the third quarter of 2026, according to growing institutional consensus, while total cryptocurrency market capitalization has contracted 15-20% from $3.2 trillion to approximately $2.6 trillion by early February.
Bear Market Signals Flash Red
Julio Moreno, head of research at CryptoQuant, recently declared Bitcoin officially in a bear market. Matt Hougan at Bitwise and other institutional voices are using the “bear” label more frequently than at any point since early 2023. Bitcoin has plunged from peaks near $96,000 to lows below $76,000, marking a significant correction in the flagship cryptocurrency.
Three key signals determine when Bitcoin’s bear market ends, with one already beginning to show movement. The extended downturn reflects broader macro pressures impacting digital assets across the board.
Hyperliquid Defies Market Gravity
While Bitcoin and major altcoins like XRP suffer, Hyperliquid has broken ranks with the broader digital asset market. The HYPE token surged roughly 71% over two weeks, reaching highs of $35, making it one of the crypto market’s top performers during the downturn.
This outlier performance demonstrates that even during broad market contractions, individual projects can buck the trend when trillions vanish from global risk trades.
Institutional Infrastructure Developments
Tarik Erk joined Binance as Regional Head for MENAT and Senior Executive Officer in Abu Dhabi, following the company’s authorization under Abu Dhabi Global Market. This move formally anchors Binance’s global operations within the UAE’s regulatory framework during a period of structural evolution.
Evgeny Gaevoy, Founder and CEO of Wintermute, notes that investors are shifting focus to Bitcoin and Ethereum as altcoins struggle for attention in the crowded market. Wintermute provides liquidity across over 60 exchanges for more than 250 crypto assets.
Regional Regulatory Progress
Vietnam has proposed a regulatory sandbox for blockchain-based finance and digital assets as a strategic pillar for developing the Vietnam International Financial Centre in Ho Chi Minh City, seeking to foster innovation and strengthen regional financial standing.
Sources: Unlock Bc, CryptoSlate, Vietnamnews, Cryptobriefing
