Bitcoin Drops 10% in 2026, Lagging Stocks and Gold Amid Policy Uncertainty

Bitcoin has declined approximately 10% so far this year. The cryptocurrency's performance lags behind major U.S. stock benchmarks, gold, and the U.S. dollar index, even after receiving a boost following the onset of the Iran conflict.

While U.S. stocks have surged to record highs in a risk-on rally—with April marking one of the strongest months in recent years—bitcoin has not followed suit. The digital asset recently traded below the $79,000 level and continues to move sideways. Max Kahn, chief of Digital Wealth Partners, noted that equities and bitcoin do not always move in tandem, particularly over shorter periods. He explained that stocks are currently benefiting from corporate earnings, share buybacks, and monetary policy outlooks, whereas bitcoin is more influenced by flows into exchange-traded funds and overall investor positioning.

Some digital asset experts suggest that the average bitcoin holder may be inclined to sell near the $80,000 level after experiencing losses for several months. Additionally, the Clarity Act, a piece of crypto legislation that some investors believe could revitalize the sector, has seen slow progress. Disagreements have emerged between big banks and the crypto industry over stablecoin yields, and a proposed ethics clause that would prevent senior government officials, including family ventures of the Trump family, from personally profiting from crypto assets has also caused friction.

At the Bitcoin 2026 conference in Las Vegas earlier this week, White House adviser Patrick Witt stated that the industry would experience rapid growth once the Clarity Act becomes law. However, traders on Polymarket estimate the probability of it passing this year as less than even odds. Alex Thorn, head of research at crypto firm Galaxy, attributed the delay to multiple unresolved questions rather than a single issue. Alaska Representative Nick Begich, also speaking at the conference, announced his intention to revive the BITCOIN Act, which would designate bitcoin as a federal strategic reserve asset and require the U.S. government to acquire 1 million bitcoin over five years.