Crypto Market Records Longest Losing Streak Since 2022, Says Bitwise

Highlights:

• Bitwise says the crypto market has recorded its longest losing streak since the 2022 bear market.
• Bitcoin ETF outflows increased selling pressure, but stablecoin payments continued to grow despite weaker crypto prices.
• Bitwise reports that tokenized assets, prediction markets, and major DeFi platforms continued to expand even as crypto prices declined.

The crypto market recorded its third consecutive quarter of negative returns during the second quarter of 2026, according to Bitwise’s latest market review. The decline marked the market’s longest losing streak since the 2022 bear market. The report points out that most major cryptocurrencies lost value during the second quarter of this year because investors reduced their exposure to risk assets.

Bitwise reports the Bitwise 10 Large Cap Crypto Index dropped 15.4% during Q2, with eight of its 10 holdings posting declines—marking a third consecutive quarter of negative performance, the longest stretch since 2022, as spot Bitcoin ETFs face their worst quarter for outflows. pic.twitter.com/fu6ITCfauh

— Kyledoops (@kyledoops) July 10, 2026

The Bitwise 10 Large Cap Crypto Index fell 15.4% during the quarter. Moreover, eight of the index’s 10 assets ended the period with losses. Bitwise said Q2 was “a tough quarter for crypto” because prices, trading activity, decentralized finance assets, and Bitcoin ETF flows all declined during the quarter.

Onchain activity also declined across major blockchain networks during the quarter. At the same time, trading volume dropped as investors reduced market participation. Assets held in decentralized finance protocols declined during the second quarter of 2026 because users reduced activity across decentralized finance applications.

Meanwhile, crypto prices moved more closely with traditional financial markets. Bitwise said digital assets showed a stronger correlation with stocks during the quarter. Despite weaker prices, Bitwise said the crypto industry has grown to about twice its size since the 2022 market bottom. Network activity remained much stronger than it was at the market bottom because blockchain usage continued growing despite weaker prices.

Ethereum transaction activity now stands about 13 times higher than the 2022 low. In addition, decentralized finance total value locked has increased by more than 60% since that period. Stablecoin assets under management have also roughly doubled from the previous cycle low. Bitwise said, “It’s only prices that haven’t kept pace.”

However, Bitwise warned that crypto prices could remain under pressure despite stronger network activity and broader institutional participation.

Bitwise Says Stablecoins Lead Crypto Adoption

Spot Bitcoin exchange-traded funds recorded their worst quarter of outflows since their United States launch. The withdrawals added fresh selling pressure because the funds have become one of the largest sources of institutional Bitcoin demand.

However, ETF flows have changed direction several times during the current market cycle. Bitcoin ETFs attracted more than $3.4 billion during seven consecutive weeks of inflows by May. Meanwhile, spot Bitcoin ETFs recorded net outflows of $95.30 million on July 9. On the other hand, U.S. spot Ethereum ETFs posted net outflows of $52.08 million on the same day. The withdrawals also ended a five-day streak of net inflows into spot Ethereum ETFs.

U.S. Spot Bitcoin ETFs Record $95.30 Million in Net Outflows on July 9

On July 9 (ET), U.S. spot Bitcoin ETFs recorded total net outflows of $95.30 million. Spot Ethereum ETFs saw total net outflows of $52.08 million, ending a five-day streak of net inflows. pic.twitter.com/wk5eO68Ve4

— Wu Blockchain (@WuBlockchain) July 10, 2026

Stablecoins continued expanding despite the weaker crypto prices. Bitwise reported that stablecoin settlement volume reached 2.3 times the payment volume processed by Visa. The company also said stablecoin issuers now hold more United States Treasury securities than most countries.

Tokenized Assets and Prediction Markets Grow

Tokenized real-world assets also posted strong growth during the first half of this year. The sector expanded 50.3% and reached a market value of $32.89 billion. The market includes blockchain versions of government bonds, private credit, and investment funds. Treasury products and Ethereum-based tokenized assets drove much of the tokenized real-world asset market’s growth during the first half of this year.

Meanwhile, prediction market trading volume reached a record $43.2 billion during the second quarter of this year, according to Bitwise. That figure stood almost 18 times higher than the same quarter one year earlier. Crypto-related stocks also outperformed major digital assets. The Bitwise Crypto Innovators 30 Index gained 30.6% during the quarter even though the company’s large-cap crypto index posted a double-digit decline.

Decentralized finance platforms also generated strong revenue despite the broader market weakness. Bitwise said Hyperliquid, PancakeSwap and Aave each generated about $900 million in revenue during the previous year. Hyperliquid also processed more than $41 billion in seven-day perpetual futures volume by May. Bitwise has warned that stronger blockchain activity, rising institutional participation, and higher adoption may not stop further short-term price declines.