According to ChainCatcher news, 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 scales, the severity of market drawdowns during each bull market rally gradually weakens.
The deepest drawdown of this cycle occurred on August 5, 2024, with a decline of 32%. During most drawdowns, the price of Bitcoin only fell 25% below local highs, indicating that the volatility of this cycle is one of the lowest so far.
This may reflect that the launch of spot ETFs has opened a huge demand window, while institutional investors' interest is also continuously growing. The supply of most short-term holders (in terms of coin count) is running "underwater" compared to their cost price, but they have not endured extreme unrealized losses associated with market deterioration.
