CoinVoice has recently learned that on-chain analytics company Glassnode disclosed data showing that although significant price increases during Bitcoin bull markets are usually accompanied by extreme selling pressure, as the market expands, the severity of market drawdowns during each bull market increase gradually weakens.
The deepest drawdown of this cycle occurred on August 5, 2024, with a drop of 32%. During most drawdowns, the price of Bitcoin only fell below the local high by 25%, indicating that the volatility of this cycle is one of the lowest to date.
This may reflect that the launch of spot ETFs opened a huge demand window, while the interest of institutional investors is also continuously growing. The supply of most short-term holders (in terms of coin quantity) is running 'underwater' compared to their cost price, but they have not endured extreme unrealized losses associated with market deterioration. [Original link]
