Bitcoin has underperformed in 2026, with a nearly 30% decline, according to a report by NYDIG. The cryptocurrency lagged behind assets like U.S. Treasuries, silver, and the Swiss franc. The report attributes the current downturn to supply mechanisms rather than risk sentiment, noting similarities with past adjustment years such as 2014, 2018, and 2022. If Bitcoin follows the 2022 pattern, it could bottom out around $38,000 to $39,000. Despite this, Bitcoin experienced its lowest volatility year in 2025, and some analysts suggest the current downturn may be less severe than previous bear markets. In Q2 2026, Bitcoin's correlation with gold increased as both faced sell-offs, diminishing the appeal of devaluation trades. Bitwise recently stated that Bitcoin's fundamentals are set for a swift recovery, despite the prolonged downturn since the last bear market. NYDIG highlights the CLARITY Act as a key forward-looking catalyst for the digital asset industry.