Crypto Market Struggles Amid Institutional Shift to Equities

The year 2026 has been a challenging one for crypto investors. Bitcoin started the year above $88,000 but corrected sharply to around $59,000, highlighting its extreme volatility. Although it has recovered to around $65,000, Bitcoin is still down 48 per cent from its peak of $1,26,198 in October 2025.

A closer look at the performance of Bitcoin and Ethereum versus equity markets shows that equities have performed comparatively well despite geopolitical tensions. The Nifty 50 index has shown far greater resilience, correcting nearly 16 per cent to 22,158 before recovering steadily to its current level close to 24,000.

Experts said that institutional investors are taking profits and reallocating capital toward sectors currently attracting strong interest, such as AI, defence, energy, and infrastructure. This has contributed to ETF outflows and short-term pressure on crypto markets.