Bitcoin (BTC) continues the 2024 bull cycle with minimal retracements due to lower volatility. This has prevented major price crashes and supported market stabilization.
Bitcoin Drawdowns in 2024
In 2024, Bitcoin showed the smallest drawdowns in its price, with a maximum loss of 32%, significantly less compared to previous periods. The main drop occurred on August 5, providing investors with an opportunity to buy the asset at a lower price. As of December 23, BTC traded at $96,071.21, despite a recent decline to $94,000.
Comparison with Previous Cycles
The 2024 bull cycle started from $16,000 and reached a peak at $108,000. In comparison, the previous 2019-2021 cycle saw more dramatic changes with peak drawdowns up to 61.8%. Post-pandemic and after the FTX crash, the market became more mature, aided by institutional investments and the influx of stablecoins.
Bitcoin Future: Correction or Growth
Despite the current low volatility, questions remain about a potential return to a bear market for Bitcoin. It is predicted that in the long term, BTC may fall to $85,000 before a new upward trend begins in 2025. The Fear and Greed Index rose again above 70 points, hinting at market greed and possible continued price increases.
Bitcoin maintains its dominant position in the cryptocurrency market despite potential correction. Low volatility and the strategy of holding assets by major players set the stage for further growth.
