As the crypto market sees an upward momentum, a significant shift has taken place in the case of Bitcoin. As per Glassnode, a prominent on-chain analytics firm, the Bitcoin ($BTC) drawdowns have experienced a notable decrease in severity amid the rising bull market sentiment. The analytics platform discussed the current position of the Bitcoin market on its official social media account.
Bitcoin’s Drawdown Severity Drops Amid the Increasing Bull Market Momentum
Glassnode mentioned that, due to the lower severity, the deepest drawdown in the present cycle stood at -32%. The respective drawdown reportedly took place on the 5th of August this year. This development reflects a positive aspect for the further growth of Bitcoin. In addition to this, it also points toward a substantial rise in the institutional interest in Bitcoin.
In line with the market data, Bitcoin has been experiencing heavy price volatility, leading to severe downturns. Nonetheless, in the present cycle, the respective severity has gone through a huge decrease. In this respect, the maximum correction of -32% highlights a gradual stability in the Bitcoin market. To give you a better idea, in 2013 cycle, Bitcoin witnessed a 71% correction. This means that BTC has become a relatively stable asset now and its volatility is decreasing with time.
The Development May Lead to a Relatively Sustainable Bitcoin Growth
Glassnode also disclosed that the majority of the corrections during this cycle occurred around just -25% down the local highs. According to the analytics company, this remarkable dip in the extent of Bitcoin corrections amid the growing bull market outlook underscores a sentiment shift for crypto sector. While market sees a continuous evolution, such trends can potentially lead to Bitcoin’s relatively sustainable growth trajectory.
