The post Bitcoin’s Current Cycle: A Lesson in Stability Amidst a Recent Price Drop appeared on BitcoinEthereumNews.com.

The growth of Bitcoin, the most prominent cryptocurrency, has been impressive since it touched its latest cycle low. At the moment, it sits 826 days removed from that low. What has drawn some attention of late, though, is a recent price drop of about 16%, taking Bitcoin back down beneath its all-time high (ATH) level. While the price drop has obviously garnered some “Uh-Oh!” headlines, it is worth recognizing that Bitcoin market is remaining stable at this time and presently appears to be undergoing a “Alas! A healthy correction!” scenario compared to what has happened in past cycles. A Closer Look at Bitcoin’s Current Correction and Historical Performance Bitcoin’s price drop yesterday constituted a correction of 16% from its all-time high. That’s above the average drawdown of 8.54% we’ve seen for Bitcoin during this current market cycle. And while we don’t really “like” to see prices dropping at all, at least it’s nice that this particular drop didn’t come close to the maximum drawdown of 26.25% we saw Bitcoin hit earlier this cycle. This cycle is the least volatile when we look at it historically, compared to the past four. It’s not super well-defined, but most people from the industry who follow Bitcoin say that it has been pretty much established that we have had three previous bull runs in Bitcoin, from 2011 to 2013, from 2012017 to 2012018, and then the most recent one from 2020 to 2021. 2011-2013 Cycle: Bitcoin saw a mean drawdown of -19.19% during this period, with a max of -49.45%. This time in Bitcoin’s life was known for not only its early explosive growth but also its equally steep corrections. – 2015-2017 Cycle: Within this cycle, the average maximum drawdown was -11.49%, and the maximum drawdown was -36.01%. These figures suggest that while Bitcoin…

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Filed under: News - @ February 27, 2025 10:24 am