Bitcoin ($BTC), the top crypto token, has recently seen an enormous decline. As per the data from Glassnode, Bitcoin’s price has plunged by -16% from the all-time high price level thereof, exceeding the current cycle’s average dip of -8.54%. The blockchain analytics platform took to social media to provide insights into Bitcoin’s current slump in comparison with the historical statistics.
Bitcoin’s Current Bull Cycle Shows Lowest Volatility Despite Correction
Glassnode’s data discloses that irrespective of the correction, the present market cycle of Bitcoin is still showing the least volatility. In the former bull cycles, the top crypto asset witnessed more severe drawdowns. For instance, in the bull market ranging between 2011 and 2013, Bitcoin saw a -19.19% average correction while the maximum drawdown stood at -49.45%. Following that the bull cycle of 2015-2017 recorded an average correction of nearly -11.49% while its peak drawdown was -36.01%. Subsequently, the bull cycle ranging from 2018 and 2021 beheld an average price correction of approximately -20.41% and a maximum drawdown reaching -62.62%.
In comparison with the above-mentioned historical trends, the present bull market of Bitcoin has experienced a relatively least volatility. This points toward a considerably developed market structure. The potential contributing factors behind this scenario include the boom of Bitcoin ETFs, massive surge in adoption, and growing institutional adoption. In this respect, the key crypto asset is displaying a comparatively minimized fluctuation.
At the moment, on the 826th day since Bitcoin’s cycle low, it is nearly 5.48x up from the bottom thereof. Historical market comparisons at the current stage in former cycles indicate varying appreciation levels. In the cycle of 2011-2015, the crypto asset went through a 284.28x surge from the bottom. Moving on, in the 2015-2018 cycle, it recorded a 7.26x growth. After that, in the bull cycle of 2018-2022, Bitcoin attained a 16.86x jump.
Broader Market Efficiency and Enhanced Adoption Leads to Relatively Mature Bitcoin Market
Keeping this in view, the performance of Bitcoin in the present cycle signifies a relatively tempered upward trajectory compared with previous cycles. According to Glassnode, potential reasons behind this could be a wider market efficiency as well as Bitcoin’s increased evolution and adoption. Hence, despite the noteworthy correction this time, historical data categorizes such drawdowns as a usual portion of bull cycles.
