Bitcoin Holds Near $79K Amid Shallow Drawdown
Bitcoin's price has held steady near $79,200 as the cryptocurrency continues to recover from its June low. According to Wintermute, the current downturn has been shallower than the bear markets of 2018 and 2022, with a drawdown of around 50% versus 77% and 83% historically recorded.
The market maker pointed out that Bitcoin's major cycle bottoms have become progressively shallower, with declines of about 83% in the 2018 bear market and 77% in 2022. The current cycle has seen a drawdown of around 50%, which is better understood as the deepest point reached earlier in the cycle rather than the current price.
Wintermute attributed the smaller loss partly to exchange-traded funds (ETFs) and institutional investors entering the market earlier during times of weakness. However, this explanation cannot be confirmed through drawdown data alone.