Crypto struggles, stocks recover: How two asset classes fared in 2026

The crypto market has significantly disappointed investors so far in 2026. Bitcoin started the year above $88,000 and corrected sharply to around $59,000, highlighting the extreme volatility attached with the asset class. While it has recovered to around $65,000, Bitcoin is still down 48 per cent from the peak of $1,26,198, touched in October 2025. At that time, Bitcoin commanded a market cap of around $2.5 trillion.

A closer look at the performance of Bitcoin and Ethereum versus equity markets shows that equities have performed comparatively well despite geopolitical tensions. The benchmark Nifty 50 index has shown far greater resilience. From its January peak of around 26,300, the index corrected nearly 16 per cent to 22,158. As the geopolitical situation improved, the index recovered steadily and is now trading close to 24,000, gaining more than 8 per cent from its lows, according to NSE data.

Bitcoin, Ethereum performance in 2026

According to data, an investment of ₹5 lakh each in Bitcoin and Ethereum at the start of 2026 would have resulted in significant losses. As of June 15, 2026, the value of ₹5 lakh investment in Bitcoin would have fallen to ₹3.69 lakh, translating into a loss of ₹1.31 lakh or 26.2 per cent, as the cryptocurrency’s price declined from $88,722 to $65,522.

Ethereum fared even worse. An investment of ₹5 lakh at the start of 2026 would have become ₹3 lakh, resulting in a loss of ₹2 lakh or 42.2 per cent, amid a drop in its price from $2,979 to $1,720 over the same period. Why is Crypto market underperforming?

Experts said that Bitcoin and Ethereum have faced a challenging start to the year. 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.

“Increasing institutional participation, evolving regulatory clarity, and deeper liquidity are gradually reducing volatility and maturing the asset class,” Ashish Singhal, co-founder and CEO of CoinSwitch, said. Equities return in 2026

Similarly, an investment of ₹5 lakh in the Nifty 50 index at the start of 2026 would now be worth about ₹4.80 lakh, as the benchmark index has declined 4 per cent so far this year. Likewise, a ₹5 lakh investment in the Nifty Midcap 100 and Nifty Smallcap 100 would have fallen to roughly ₹4.85 lakh, with both indices shedding around 3 per cent each during the same period, according to NSE data.

Vikaas M Sachdeva, CEO, BitDelta India, said that there are signs that selling pressure is beginning to ease, supported by improving geopolitical sentiment. He said that Bitcoin’s direction over the coming months will be influenced by two key factors: the path of U.S. monetary policy and the momentum of spot ETF inflows.

“Clearer signals on either could strengthen institutional participation and improve overall market confidence. Inflation data, interest rate expectations and corporate treasury activity will remain important indicators to watch,” he said.

Commenting on the stark divergence in the performance of the two asset classes, Ponmudi R, CEO, Enrich Money, said that the key difference is that equities are supported by corporate earnings, economic growth and domestic liquidity, while crypto remains largely sentiment-driven. Strong SIP inflows, government infrastructure spending, manufacturing growth and improving corporate profitability continue to provide support for equities. ===============================================

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers’ discretion is advised.

Note:- (Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. The content is auto-generated from a syndicated feed.))