The crypto market's 2026 drawdown, driven by Bitcoin's lackluster performance, has weighed heavily on most altcoins—borne out by on-chain data.

Nearly half of Bitcoin’s circulating supply was in profit at the cycle peak. That has dropped sharply, with **over 8 million BTC sitting underwater**, “highlighting the scale of the recent market reset,” Glassnode posted Tuesday.

A similar conclusion can be drawn for **Ethereum**, the second-largest cryptocurrency by market capitalization. “The share of Ethereum supply sitting at more than 3x profit has dropped to **11%**, the lowest reading since February 2017,” Glassnode wrote. Compared to the last two cycles, that cohort exceeded 50% of the total supply at peak. “This time, that threshold was never reached. Ethereum’s profitability profile has fundamentally compressed relative to prior cycles,” the on-chain analytics firm said.

Both Bitcoin and Ethereum are down roughly 31% and 46% in 2026, according to CoinGecko data. **XRP’s** year-to-date performance shows it is down 41%, doing slightly better than Ethereum, but XRP holders’ profits and network adoption have tanked sharply.

The 90D-SMA of XRP's Realized Profit to Loss Ratio has fallen to **0.38**, indicating that for every dollar of loss being realized in the market, only 38 cents of profit is being taken. “At the 2025 peak, this ratio reached 50, meaning profit-takers were overwhelming loss-sellers by a factor of 50x,” Glassnode wrote. “That dynamic has fully inverted. A ratio this deep below 1 reflects a market where the majority of participants who are moving coins are doing so at a loss, a hallmark of **intense capitulation**.”

Periods of market stress often reveal how investors think about risk and time horizon, according to Gracy Chen, CEO of Bitget. “We're seeing a meaningful portion of the market sitting on unrealized losses, which historically has coincided with lower sentiment and greater caution,” Chen told Decrypt. “For long-term participants, these periods can be useful for reassessing conviction and portfolio positioning rather than reacting purely to short-term price movements.”

On a similar trajectory, the 90D-SMA of total fees paid on the XRP network has also fallen **91.5%** from 5,900 XRP in Feb 2025 to roughly 500 XRP today, suggesting a “near-total contraction in organic transaction demand on the network since the speculative peak.”

## What’s next for altcoins?

Most altcoins are down over 50% to 80% from their all-time highs, indicating a sustained downtrend amid geopolitical uncertainty. However, a few select altcoins like **Hyperliquid**, driven by fundamentals, and privacy coins **Zcash** and **Canton**, continue to outperform the rest of the altcoin complex, Decrypt previously reported.

“What is becoming clearer is that this bear market is accelerating a shift from narrative-driven tokens toward **cash-flow-generating protocols**,” Matthew Pinnock, COO at Altura DeFi, told Decrypt. “Hyperliquid's success has shown that investors are increasingly valuing tokens like tokenized equity, rewarding projects with revenue, buybacks, and strong product-market fit. The market is becoming far less tolerant of dilution and far more focused on fundamentals.”

Chen agreed, noting that the market is becoming more discerning, explaining that investors are “now paying closer attention to actual product usage, revenue generation, token utility, and alignment between communities rather than pure hype.”

Despite Bitcoin’s sustained correction in 2026, which led to altcoin capitulation amid geopolitical uncertainty, experts don’t believe the bottom is in yet.

“This correction feels less like a collapse in crypto adoption and more like a **repricing of risk**,” Pinnock said, underscoring a potential bright side to the otherwise pessimistic sentiment pervading the crypto ecosystem. “Historically, these periods are when future winners separate themselves from the field,” he explained, adding that when liquidity returns, capital could “concentrate into a smaller group of assets that can demonstrate durable revenue rather than simply relying on exchange listings, token unlock schedules, or venture-backed narratives.”

Bitcoin is down 2.4% over the past 24 hours and is hovering at around $61,080. Users on prediction market Myriad, owned by Decrypt’s parent company Dastan, reflect its gloomy outlook, assigning the leading crypto’s next move to $55,000 a **75% chance**, up from 61% on June 1.

Millions of Bitcoin are underwater as experts say the 'scale of market reset' signals capitulation, but long-term opportunities remain.

Crypto Bloodbath: Over 8 Million BTC Underwater as Capitulation Intensifies

New York hotel rates face fresh pressure as union wages top $100K, raising costs ahead of the **2026 World Cup**. 

## Key Takeaways
- New York hotels avoided a strike; union pay rises 50%, with **$61/hour** targeted by 2034.
- Manhattan room rates near **$500-$600** could climb another **50%-60%** as costs increase.
- Bank of America data signals softer travel demand ahead of the 2026 World Cup.

## Skyrocketing Costs in New York Hotels
Room rates were already elevated after a post-pandemic rebound. According to CoStar, the average daily rate in 2023 was **$334 citywide**, while standard rooms in Manhattan routinely clear **$500 to $600** after taxes and fees. Operators say expenses are up across the board, leaving little room to maneuver. Several owners expect higher prices to be the only viable path to preserve margins as costs climb.

## A Labor Deal That Reshapes the Industry
New York hoteliers struck a deal that averted a strike and raised pay for unionized staff. **Housekeeping wages** are set to climb roughly **50% over eight years**. By 2034, hourly pay would top **$61**, and per the progression, full-time housekeepers could earn **$100,000 to $110,000 annually by 2032**. The shift is historic for the sector. Owners now project operating costs to increase by double digits, which typically feeds directly into nightly rates.

## Luxury Hotels Versus Budget Challenges
Top-tier properties believe their guests will swallow steeper bills for location and amenities. Midscale and budget hotels have less cushion. Rates above **$500 in Manhattan** already squeeze family travel and price-sensitive visitors. The **Bank of America Institute** has tracked softer spending among lower-income households on airfare, lodging, and leisure, a trend that threatens occupancy for hotels relying on domestic travelers looking for deals.

## External Economic Pressures on Tourism
International travel has felt the pinch from higher fuel costs, selective airline capacity cuts, and jittery consumers reacting to geopolitics. Some boutique hotels report weaker inbound traffic relative to expectations. That complicates planning for the **2026 tournament**. Expensive flights and premium match tickets may blunt the hoped-for surge in June, even with New York and New Jersey hosting multiple games. Many hoteliers are cautiously targeting pricing closer to a typical summer until bookings firm up.

New York hotel rates face fresh pressure as union wages top $100K, raising costs ahead of the 2026 World Cup.

NYC Hotel Room Rates Set to Skyrocket as Housekeepers Earn $100K+

A recent research note from Citi analysts confirms what many in the crypto space have feared: **quantum computing poses a significantly greater risk to Bitcoin than to Ethereum**. The gap isn't just technological—it's also about governance.

## Why Bitcoin is Exposed

Bitcoin's security relies on **elliptic curve digital signature algorithms**. When a transaction is broadcast, the public key is briefly exposed on-chain. A quantum computer running Shor's algorithm could, in theory, derive the private key in minutes. A Google Quantum AI paper, in collaboration with Stanford and the Ethereum Foundation, estimated that a quantum computer with fewer than **500,000 physical qubits** could break Bitcoin's cryptography in about **nine minutes**—and the computing power needed is 20 times lower than previously thought.

Nic Carter, co-founder of Coin Metrics, has warned that quantum computing is "the biggest long-term risk to bitcoin's core cryptography" and that developers are "sleepwalking towards collapse." He estimates a quantum computer could break elliptic curve cryptography as early as **2028**, potentially exposing **6.9 million BTC** in legacy wallets and Taproot outputs.

## Bitcoin's Governance Problem

Bitcoin's governance is intentionally conservative, making upgrades extremely slow. SegWit took **8.5 years** from conception to adoption; Taproot took **7.5 years**. The current quantum proposals, BIP-360 and BIP-361, are still in draft or early testnet stages. A full transition to post-quantum signatures would be the most contentious change Bitcoin has ever attempted, and most Bitcoin Core developers have shown limited urgency.

## Ethereum Has Already Acted

Ethereum's approach to quantum resistance is a **structured roadmap already in execution**, built on NIST post-quantum cryptography standards finalized in August 2024. The Pectra upgrade (May 2025) introduced EIP-7702, allowing individual accounts to switch to quantum-safe signatures voluntarily. The upcoming Hegotá hard fork (H2 2026) embeds this further at the protocol level, with milestones targeting completion of core post-quantum infrastructure by approximately **2029**.

## The Institutional Calculus

For corporate treasurers and sovereign wealth managers, quantum risk is no longer a tail scenario. Governments are already acting: U.S. federal agencies faced an April 2026 deadline for post-quantum transition plans, the EU targets 2030, and the G7 published a coordinated roadmap in January 2026.

The author, Samir Tabar, who sold Bit Digital's Bitcoin holdings and built one of the largest corporate Ethereum treasuries, argues that Ethereum is the more adaptive, capable, and durable asset. He concludes: "Ethereum is the asset whose architecture was built to survive what is coming."

A recent research note published by Citi analysts reached a conclusion about quantum risk that should give every institutional bitcoin holder pause, Tabar explains. 

Quantum Clock Ticking: Why Bitcoin Faces Greater Risk Than Ethereum

Bitcoin's price action has been down-only in June, dropping double-digits as capital continues to exit ETFs amid escalating geopolitical and macroeconomic tensions.

Still, the leading crypto is down **50% from its October 2025 all-time high of $126,080**, making it the **shallowest bear market in Bitcoin's history**.

In 2012, the bear market drawdown exceeded 90%. Since then, this number has been declining, reaching 82% for the next two cycles and 74% in the 2022 cycle. Compared to this cycle’s 50%, the drawdowns are getting shallower with time.

“Bitcoin is now a more institutionalized macro asset, supported by ETFs, deeper liquidity, and a larger base of long-term allocators,” Jeff Ko, chief analyst at crypto exchange CoinEx, told Decrypt. “That is why drawdowns have been compressing across cycles, and I do not expect another 80% drawdown in the current cycle.”

"The holder composition of Bitcoin this cycle is very different from what we’ve seen in previous cycles,” Martin Lee, content & market insights lead at DWF Labs, told Decrypt. “We have the presence of institutions and corporations putting Bitcoin on their balance sheet. We do expect drawdowns to be more shallow and general volatility to be more muted as we’ve seen over the last 2 years.”

## Why Bitcoin hasn’t bottomed

Despite a 50% drawdown representing a “meaningful reset,” Ko does not believe that the bear market is over. Instead, the CoinEx analyst said investors should pay attention to **“ETF outflows, macro tightening, and liquidity rotation.”** That will help determine how prolonged a bear market can be.

Alex Tsepaev, Chief Strategy Officer of B2PRIME Group, echoed Ko’s take, suggesting that the bear market is far from over. “The current picture is bearish due to the combination of a chain of ETF outflows, macro pressure, and on-chain stress caused by both.”

“Since May 18, there has been only one day of inflows, on June 4, which shows how weak the passive bid has become,” Tsepaev highlighted.

## Identifying a Bitcoin bottom

Both Ko and Tsepaev collectively highlighted **$60,000** as the first key psychological level that matters, with a bearish scenario involving a retest of the **$55,000 and $45,000** levels.

Wintermute has a similar bearish take, suggesting that the $62,000 support has come undone after Bitcoin's recent drop. "Bitcoin never spent meaningful time in the $50,000 to $59,000 range on the way up in 2024, so there are no real technical levels here. That leaves flow as the thing setting direction," the market-making firm said.

Reflecting this, users on prediction market Myriad have assigned a **72% chance** that Bitcoin’s next move could push it down to $55,000. That number has increased from 39% on June 1, underscoring the shift in sentiment favoring bears.

Ko highlighted a potential de-escalation of the geopolitical outlook as a critical catalyst that could help form a bottom for Bitcoin. A de-escalation could lift the energy and risk-off overhang, opening the door to a dovish Fed turn, or at least a signal that further hikes are off the table. Increasing ETF demand is the second catalyst highlighted by Ko.

On the altcoin front, the DWF analyst noted how Hyperliquid’s HYPE has diverged from the broader market trend. That is a “potential sign” of protocols being valued individually, based on their own merits, instead of being at the mercy of Bitcoin’s performance.

“Not every token will recover, and that’s simply a function of how markets are, assets get priced according to their merits over time—the same thing happens in equities,” Lee said.

Bitcoin is down 50% from its all-time high in the shallowest bear market to date—but analysts caution that the bottom isn't in yet.

Bitcoin's Shallowest Bear Market: 50% Drop from ATH, But Analysts Warn Bottom Isn't In

In a bizarre turn of events, a man named Arivu from Southern India accepted a **40 SOL bounty** (worth ~$2,600) from Pump.fun's new "GO" marketplace to tattoo a meme coin's name on his forehead. But the instructions were **misspelled** — instead of "$bountywork," he got "$boutywork" permanently inked above his eyes.

### The Dark Side of Crypto Bounties

Pump.fun's platform allows users to offer crypto for humiliating tasks, drawing comparisons to "Black Mirror." Examples include a man covering himself in watermelon and repeating a phrase, and a $690,000 bounty for a suicide-related task, sparking outrage.

### The $boutywork Token Surge

Despite the mistake, the crypto community launched a **$boutywork meme coin**, which soared to a **$373,000 market cap** within hours. However, such tokens often crash, leaving late investors with losses.

### Arivu's Silver Lining

Arivu reportedly earned nearly **$29,000 in transaction fees** from the token, as creators routed fees to him as a reward. Still, the permanent tattoo raises questions about the value proposition.

### Industry Backlash

Even crypto insiders are alarmed. One user tweeted: "How do we convince normies that Crypto is still a serious industry when we are encouraging a disturbing trend?" X's head of product Nikita Bier commented: "It's sad that all the rich people left crypto and it's now just teenagers forcing poor people to do shameful things."

This incident highlights the **ethical decay** in the meme coin space, where humiliation has a price tag.

The people behind a meme coin paid a man to tattoo its name on his forehead -- but misspelled it in the instructions.

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