Data Shows Bitcoin’s 11% Drop Is Still ‘Modest’—Here’s Why

The largest cryptocurrency in the world, Bitcoin has plunged a dramatic 11% from its all-time high. Although some investors might find this price devaluation alarming, historical data indicates that it is really small in respect to the other market cycles of the cryptocurrencies.

The past price trends of Bitcoin show several abrupt declines and rises; volatility is always present. One has to consider the context of this most recent decline in order to evaluate its future course.

Historical Context Of Bitcoin Corrections

Bitcoin has seen many corrections since its inception. For instance, Between January 2012 and December 2017, the value of the alpha coin dropped more than 10% on at least 13 occasions. Some corrections have caused market value losses of billions of dollars before making decent rebounds; some have even reached 20% or more.

The fact that the current Bitcoin market cycle is less volatile than previous bull runs is among its most noteworthy features. The following patterns of drawdown are seen in historical data from prior cycles:

This cycle continues to be the least volatile of all: