Cryptocurrency records its longest losing streak since 2022, Bitwise said

The crypto market fell for three consecutive quarters, setting the longest loss record since 2022.

According to the market review report released by Bitwise, the crypto market recorded negative returns for the third consecutive quarter in the second quarter of 2026, which is the longest decline cycle since 2022.

Highlights

·The Bitwise index fell 15.4%, and crypto assets suffered their longest quarterly losing streak since 2022.

·Spot Bitcoin ETF experienced a record quarterly outflow of funds, and the linkage between digital assets and the stock market increased.

·Despite the weakening of major crypto asset prices, stablecoin settlement volumes, tokenized assets and forecast markets are still growing.

The Bitwise Top 10 Crypto Index fell 15.4% in the second quarter, with 8 of its 10 component assets closing down. Spot bitcoin exchange-traded funds also recorded their worst quarterly outflows since their launch.

Crypto prices continue their quarterly decline. Bitwise reported that chain activity, trading volume and locked assets in decentralized financial agreements all declined in the second quarter. At the same time, the correlation between crypto assets and stocks has increased, making digital asset prices more closely linked to traditional risk markets.

The report pointed out that the second quarter of 2026 was \"a difficult quarter\" for the crypto market. The latest round of declines has left the market recording negative returns for three consecutive quarters, the longest consecutive period of losses since the bear market in 2022.

Outflows from spot Bitcoin ETFs further exacerbated selling pressure during the quarter. Since the funds were launched in the United States, they have become a significant source of institutional demand, but record quarterly withdrawals suggest investors are reducing exposure as market conditions deteriorate.

However, in the current market cycle, the flow of ETF funds has reversed many times. As of May 2026, Bitcoin ETF has attracted net inflows of more than US$3.4 billion for seven consecutive weeks.

stablecoins and tokenized assets continue to grow

Despite the decline in crypto prices, Bitwise said that stablecoin settlement volume has reached 2.3 times Visa\'s processing volume. The report added that stablecoin issuers currently hold more U.S. Treasuries than most countries.

It is reported that adjusted stablecoin trading volume will reach US$10.9 trillion in 2025, while under broader statistics, total settlement volume will reach US$33 trillion. Visa has also expanded its direct participation in the blockchain payments space, with its stablecoin settlement operating rate of approximately US$7 billion as of March 2026.

Meanwhile, Bitwise data shows that tokenized real-world assets increased by 50.3% to US$32.89 billion in the first half of 2026. This area includes blockchain versions of assets such as government bonds, private credit and investment funds. This figure reflects institutions \'continued interest in tokenization. Previous reports have shown that the tokenized real asset market is close to US$34 billion, with its Sino-US government bond products and Ethereum-based assets leading the growth in this field.

Predicts that the market and crypto stocks bucking the trend

Predicts market trading volume in the second quarter to reach a record US$43.2 billion, almost 18 times the trading volume in the same period last year. Crypto-related stocks also outperformed major digital assets. The Bitwise Crypto Innovators 30 Index rose 30.6% during the quarter, while the company\'s large-cap crypto index recorded a double-digit decline over the same period.

In addition, Bitwise said that Hyperliquid, PancakeSwap and Aave each generated approximately $900 million in revenue over the past year. These data suggest that there is continued demand for decentralized trading, lending and derivatives platforms. As of May 2026, Hyperliquid\'s 7-day perpetual contract trading volume exceeded US$41 billion, and open interest contracts also reached approximately US$9.4 billion.

On-chain data is still above the bottom of 2022

Bitwise compares current market data with the situation during the crypto market trough in 2022. Since then, Ethereum trading activity has grown approximately 13 times, and the total value of DeFi\'s locked positions has increased by more than 60%. The size of assets managed by stablecoins has also roughly doubled from the market low in 2022. \"Only prices have failed to keep pace,\" Bitwise said. The company said the crypto industry is currently about twice as big as it was at the bottom of the previous cycle. However, Bitwise also warned that stronger online activity and broader institutional participation may not prevent further price weakness in the short term.

Disclaimer : This article does not constitute investment advice. The content and materials on the page are for educational purposes only.