Bitcoin and cryptos retrace as early 2026 rebound loses steam

Cryptocurrencies including Bitcoin and Ethereum declined amid profit-taking and outflows from U.S. spot Bitcoin ETFs, signalling a pause in the early 2026 rebound. Bitcoin traded near $90,508, down more than 2% as traders took profits after prices approached recent highs. Ethereum and XRP also eased, reflecting broader risk asset weakness. 

Crypto infrastructure startups raised a combined $201.4 million in funding last week, led by metaverse firm Futureverse and zero-knowledge proof developer RISC Zero. The funding highlights sustained investor interest in foundational blockchain technologies despite market volatility. Industry participants believe infrastructure focused firms are better positioned to benefit from long-term adoption trends compared to speculative consumer-facing projects.