Crypto Market Slashed in Half — Has the Legendary Four-Year Cycle Finally Collapsed?
TL;DR:
The global cryptocurrency market contracted from $4 trillion to just $2.4 trillion at the start of 2026.
Bitcoin suffered a drop of over 50% from its all-time high, hovering near the $60,000 threshold.
Institutional flows into Bitcoin ETFs turned negative, reflecting structural de-risking across the sector.
Following the explosive rally of late 2025, digital assets are navigating one of the sector’s most complex phases. Analysts suggest that the Bitcoin 2026 four-year cycle may have permanently mutated, as the market has stopped following its internal rhythms to align with global macroeconomics.
Gate Founder Dr. Han: What Should We Do to Return to a Bull Market?
On February 11, Gate Founder and CEO Dr. Han stated in a speech that.based on actual data, we are indeed currently in a bear market. The total market value of the crypto space has fallen from $4 trillion last… pic.twitter.com/s3iy8ftndn
— Wu Blockchain (@WuBlockchain) February 12, 2026
After achieving an all-time high near $126,198 last October, Bitcoin’s price plummeted by 50%, dragging retail enthusiasm down with it. This decline triggered a cascading effect, drastically reducing trading volumes and participation across major exchange platforms.
Furthermore, the withdrawal of institutional capital accelerated this deleveraging process. Net flows into U.S. spot Bitcoin ETFs, which previously saw billions in weekly inflows, have entered negative territory, cutting assets under management nearly in half.
From the Halving Narrative to Macroeconomic Maturity
Industry analysts noted that the traditional narrative based on the halving has lost its historical dominance. Currently, digital assets move in close synchronization with the performance of U.S. equities, monetary policies, and technological breakthroughs in Artificial Intelligence.
This integration suggests that the ecosystem has reached structural maturity, where volatility no longer depends on pure speculation. Instead, factors such as global liquidity and risk appetite in traditional markets now dictate price action.
Despite the bearish market, the industry’s focus is shifting toward real-world utility. The tokenization of Real-World Assets (RWA) and the integration of AI agents into Web3 are emerging as the engines that will drive the next phase of institutional expansion.
In summary, although the crash shook investor confidence, this period is perceived as a necessary transitional phase. The crypto market is reconfiguring itself into a more regulated system grounded in technical infrastructure, moving beyond its dependence on predictable historical cycles.
Filed under: News - @ February 14, 2026 1:16 am