Bitcoin drawdown from peak is smaller than in past cycles, CoinDesk says

Bitcoin is currently down 32% from its all-time high of $126,000 recorded on Oct. 6 last year, but the decline is far smaller than in past cycles, according to a CoinDesk analysis. CoinDesk said Bitcoin’s drawdown one year after prior cycle peaks was 69.7% in 2013, 82.3% in 2017 and 74.6% in 2021. It added that the maximum decline in the current cycle was 53%, smaller than the 77% to 85% seen in past bear markets. Experts cited a larger share of institutional capital from ETFs, asset managers and companies, along with lower leverage, as the main reasons. CoinDesk said institutional money tends to buy back during price declines to maintain target allocations, helping ease the kind of cascading liquidations seen in earlier cycles. The outlet added that as the market has matured and Bitcoin volatility has fallen, future upside may also be more limited than in the past.