Bitcoin's Institutional Bear Market Takes Shape Amid Gradual Selling
The Bitcoin market is experiencing its first institutional bear market, characterized by a decline in price without major failures of intermediary institutions.
The current cycle differs from previous ones, where easy villains like Terra and Three Arrows Capital led to the downfall of other companies. In contrast, this time around, it's more about the market itself, with a 33% loss for 2026 by early June, according to Reuters, marking Bitcoin's worst start to a year in over a decade.
The decline is shallower so far, at around 51% through June 9, compared to previous cycles that took roughly 12 months to reach their bottom. However, the largest investment products and custodians are functioning normally, indicating efficient distribution of losses.