Bitcoin Stumbles - Don’t Panic

“Don’t Panic.” - Douglas Adams, The Hitchhiker’s Guide to the Galaxy

The latest bout of market uncertainty briefly brought Bitcoin down about 20% from the highs of the last 90 days. While the move feels extreme, it’s worth remembering how frequently this still happens for Bitcoin, the oldest and most stable of digital assets, even in up-trending markets. Since the cycle trough in November 2022, Bitcoin has experienced roughly 9 periods where prices stayed 20% or more below the peak of the last 90 days. Nonetheless, Bitcoin is up well over 500% since then.

Notably, the last few years have brought remarkably fewer periods of extended drawdowns. Since the start of 2023, Bitcoin has only spent around 10% of its days at drawdown-type level (20% or more below the high point of the prior 90 days). Before that? Bitcoin was in this sort of drawdown nearly 60% of the time.

So, while nobody likes to see prices drop, we’re still in a much less volatile era of Bitcoin, and it has generally paid not to panic.

The information herein is for general information purposes only, is not investment advice, and should not be used in the evaluation of any investment decision. An investment in digital assets involves a high degree of risk. Past performance is no guarantee of future results.