Bitcoin's Bear Market Downturns Soften
Bitcoin's bear markets are becoming less brutal, according to Wintermute, which points out that the cryptocurrency is now spending less time near extreme capitulation levels. This suggests the market may be maturing compared with earlier cycles.
In its latest update, Wintermute noted that Bitcoin's latest downturn looks less severe than previous bear markets. The trading firm found that BTC is currently about 50% below its peak 340 days after the top, which is a significant improvement from losses above 75% at the same stage in 2018 and 2022.
Wintermute also pointed out that each cycle has bottomed shallower: 83%, then 77%, then 50%. The difference is also visible in the time needed to recover, with Bitcoin taking more than 500 days to return to levels seen around the current point after previous bear markets.