Where Next for Bitcoin After Worst Quarter Since 2018?

💡 DMK Insight

Bitcoin’s 22% drop in Q1 2026 signals a major shift in market sentiment, driven by geopolitical tensions and monetary policy. Traders need to pay attention to late-quarter data suggesting a potential recovery. The combination of war, tariffs, and a hawkish Fed has historically led to risk-off behavior, but if the worst is indeed behind us, we could see a rebound. Look for key resistance around previous support levels; if Bitcoin can reclaim those, it might attract buyers again. However, don’t ignore the flip side—if geopolitical tensions escalate or the Fed maintains its aggressive stance, we could see further downside. Watch for volatility indicators and sentiment shifts in related markets like equities and commodities, as they often correlate with crypto movements. Keeping an eye on the next Fed meeting could provide crucial insights into future price action.