The cryptocurrency market in 2026 may exhibit typical cyclical fluctuations. Based on historical patterns and current market sentiment, we can observe a complete trajectory from strong upward movement to deep correction.

The first three months of the year are an accumulation period. In January, global institutional funds continued to flow in, and mainstream assets such as Bitcoin and Ethereum experienced a general rise. In February, the market accelerated, with Bitcoin breaking through previous highs, and short-term volatility increased accordingly. By March, ecological projects like DeFi, NFT, and Layer 2 began to attract attention, with diversified capital inflows.

The middle two months are a peak period. In April, Bitcoin continued to reach new highs, and market enthusiasm peaked, with various media follow-up reports. However, starting in May, signs of overheating appeared, with speculative funds overly concentrated, leveraged positions stacking up, and the market far from rationality.

The last three months are a correction period. In June, large-scale liquidations occurred, forced liquidations triggered chain reactions, and prices fell rapidly. In July, panic sentiment dominated, with a wave of selling impacting the entire market, causing significant drops in assets like Bitcoin, and market participation sharply declined. August established bear market signals; although prices continued to weaken, long-term opportunities were also brewing.

This cyclical pattern of repetition is normal in the crypto market—ranging from institutional entry and ecological prosperity to overheating, liquidations, panic, and then restarting the next cycle. The key is to maintain clear risk awareness at different stages.