The crypto market entered a prolonged period of weakness following its October 2025 peak, when major assets, including Bitcoin, topped out. What followed was a five-month stretch of sustained capital outflows—the longest on record.

Retail participation hits multi-year low

Retail engagement dropped to its lowest level since the 2022 bear market, according to TRM Labs.

Total transaction volume in Q1 2026 came in at $979 billion, marking a 23% decline from Q4 2025 and an 11% drop year-over-year. The quarter also extended a two-quarter streak of net outflows that began in late 2025.

TRM Labs attributed the Q1 downturn to a combination of macroeconomic and policy-driven shocks. The U.S. tariff escalation triggered a…