Crypto market faces longest losing streak since 2022

Eight of the ten assets tracked by the Bitwise index ended the period in the red, signaling a broader retreat. Institutional investors, who previously anchored demand for Bitcoin ETFs, pulled capital as market conditions soured. This selling pressure coincided with an increased correlation between digital assets and traditional equity markets, binding crypto prices more tightly to the volatility of broader risk assets.

Despite the price decline, infrastructure metrics tell a different story. Stablecoin settlement volume hit 2.3 times the throughput of Visa, and issuers now hold more U.S. Treasury securities than most nations. Tokenized real-world assets expanded by 50.3% in the first half of 2026 to $32.89 billion, while prediction markets reached a record $43.2 billion in quarterly volume—a nearly 18-fold increase year-over-year.

Bitwise notes that the industry remains fundamentally larger than it was during the 2022 trough. Ethereum transaction activity has climbed 13-fold, and total value locked in decentralized finance protocols is up 60%. While decentralized platforms like Hyperliquid, PancakeSwap, and Aave continue to generate significant revenue, the disconnect between robust on-chain activity and depressed token prices persists. Crypto-related stocks offered a rare bright spot, with the Bitwise Crypto Innovators 30 Index climbing 30.6% even as large-cap tokens struggled.