Bitcoin’s drawdown is ‘less dramatic’ this cycle, Fidelity says
A shallower Bitcoin drawdown than previous cycles „indicates a maturing market with reduced volatility and stronger institutional confidence,“ said Nick Ruck, director of LVRG Research.
Bitcoin (BTC) has declined by about 50% this market cycle, far less than in previous cycles, Fidelity Digital Assets said, adding this trend could continue over time.
Bitcoin’s post-all-time-high drawdowns have historically been steep, at about 80% to 90%, but this cycle has been about 50%, Fidelity Digital Assets research analyst Zack Wainwright said Tuesday.
One can see the “diminishing returns” that have developed from cycle to cycle when looking at Bitcoin’s price performance from the perspective of the previous all-time high, he said.
