Bitcoin down 32% from peak, smaller drawdown than past cycles

Bitcoin is currently down 32% from its all-time high of 126000 recorded on Oct. 6 last year, a decline smaller than in previous cycles, according to CoinDesk. The analysis shows that Bitcoin's drawdown one year after prior cycle peaks was 69.7% in 2013, 82.3% in 2017, and 74.6% in 2021. The maximum decline in the current cycle was 53%, which is less than the 77% to 85% seen in earlier bear markets. Experts attribute this to a larger share of institutional capital from ETFs, asset managers, and companies, as well as lower leverage. Institutional money tends to buy back during price declines to maintain target allocations, which helps mitigate cascading liquidations observed in earlier cycles. CoinDesk also noted that as the market matures and Bitcoin volatility decreases, future upside may be more limited than in the past.

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