Investing.com — Bitcoin’s decline of more than 30% from its all-time high highlighted the characteristic volatility of cryptocurrencies. However, historical data suggests that such fluctuations are part of Bitcoin’s normal operating pattern and often precede a fresh rally, CNBC writes.
At the end of November, Bitcoin’s rate dropped to $80,000, which is 36% below the historical peak of $126,000 reached earlier in October. As of Thursday, Bitcoin is trading around $93,000, recovering some losses, but still sitting 26% below the summit.
Analysts note that despite the alarming figures, the current correction aligns with historical market cycles:
Current cycle. According to CoinDesk Data, Bitcoin already endured a pullback of 32.7% in March–August 2024 and 31.7% in January–April 2025.
2017 cycle. That year saw two crashes of about 40% and a 29% drop in November before a new record was set in December.
2021 cycle. Drops of 31% and 26% were observed early in the year, followed by a correction of over 55% (amid China’s mining ban), after which the market rebounded to new highs in November.
“Looking at prior cycles, volatility of this magnitude aligns with the longer-term trends,” stated Jacob Joseph, a senior analyst at CoinDesk Data.
Investor sentiment is clouded by worries about the end of the “bull” market. Typically, a “crypto winter” is defined by a price drop of 70–80% from the peak. This has not happened yet, but the very possibility of this scenario makes market participants cautious.
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