Bitcoin's Drawdowns Are Not Permanent

Bitcoin's price has fallen by more than 50% ten times in its history, but every previous drawdown of that depth eventually resolved and a new high was made.

The current price is roughly 49% below the six-month high of $124,774, which occurred on October 6, 2025, and has bottomed at $58,551 for a peak-to-trough fall of 53%.

CoinShares' Research notes that position size is what matters most in this situation, as a 5% allocation to Bitcoin did not significantly increase the volatility or worst-case drawdown of a multi-asset portfolio.

According to models established from January 2020 to June 2026, adding a rebalanced 5% Bitcoin sleeve produced 8.2% annualised returns and a Sharpe ratio of 0.67, with essentially unchanged volatility at 12.2%.