CoinWorld reports:
As cryptocurrency holders feel panic over the recent market downturn, there is a sense of reassurance that the market may take a breather during the upward trend if this bull market cycle is similar to the previous two.
In the bull markets of 2017 and 2021, Bitcoin experienced 8 and 6 pullbacks respectively. We define pullbacks as declines of 20% or more within a 30-day period.
If we believe we are currently in the present bull market, which began in March 2024 when we surpassed previous all-time highs, then so far we have had two corrections. This suggests there might be further declines, but also indicates that the top is not yet in sight.
Bitcoin fell by 7% this week to $56,600, while Ethereum plummeted by 12% today to $2,980. Other tokens have faced similar fates, with Notcoin depreciating by a third over the past seven days to trade at $0.01, Dogecoin dropping to $0.10, experiencing a 17% loss.
These painful price fluctuations culminated today in the High Peak Mountains. Even the most experienced traders are eager to exit.
“The elevator up, the stairs down on Bitcoin” is a common saying that resonates on days like today. However, despite fervent claims that the bull market has ended, pullbacks are a normal and natural part of any upward cycle.
2017 Bull Market:
From 2016 to 2017, Bitcoin soared from $1,000 to a peak of $19,800 in just ten months.
During the same period, Bitcoin experienced six double-digit pullbacks. In fact, most of these pullbacks were around 40%, much higher than the monthly 21% drops currently troubling Bitcoin and Ethereum, reminding us that these are not the most painful we’ve seen in recent history.
2021 Bull Market Cycle:
The cryptocurrency bull market of 2021 followed a similar pattern.
Starting below $10,000, the price began to rise in July 2020. Towards the end of the year, it broke previous all-time highs, signaling the arrival of the bull market.
As Bitcoin hit a historic high of $67,000, there were multiple downturns including a significant 50% drop in mid-2021, as well as over six double-digit declines.
However, after notorious cryptocurrency figures like SBF, Do Kwon, Kyle Davies, and Su Zhu sounded the near-death knell, token prices have recovered.
Mature Market:
Despite lingering ghosts like SBF, the cryptocurrency market has matured.
We now see traditional financial giants buying and holding Bitcoin – with BlackRock and ten other Bitcoin ETF providers holding over 4% of the network’s 21 million supply. An Ethereum ETF is on the horizon, with analysts expecting approval by July 8.
Some of the world’s most prominent investors support the asset, and use cases for cryptocurrencies are skyrocketing. The tokenization of real-world assets is happening at an incredible pace, with major institutions testing crypto payments, and increased adoption of cryptocurrencies in every region of the world.
However, despite the maturity of the cryptocurrency market, some traders still painfully witness its susceptibility to volatility.
