Important facts:
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“Investors should prepare for a decline of more than 10%,” NYDIG says.
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The decline that BTC experienced a few days ago is in line with its historical behavior.
Over the past five days, Bitcoin (BTC) has been trading between $60,700 and $69,000 (USD). Thus, the market is trying to get closer to the all-time high (ATH) of US$73,700, which was reached about two weeks ago. This behavior raises questions about whether it will continue to grow or whether there will be other recurrences.
To bring clarity to the issue, NYDIG, a company that provides infrastructure and financial services with BTC, shared its perspective. “Declines of more than 10% are a regular occurrence, even during Bitcoin’s cyclical low-to-peak rallies,” Pur:,
The company added this Bull markets are never a straight line, but are hampered by some setbacks. He indicated that in the last three cycles that brought BTC to a new ATH (in 2013, 2017 and 2021), it recorded an average decline of 24-36%. This can be seen in the following table.
Meanwhile, Bitcoin’s new ATH in the current cycle was marked about two weeks ago, Experienced an average decline of 17.5%, This percentage is also almost the same as the fall from that milestone to the US$60,000 area, a level it had bounced from five days earlier, as seen below.
In this sense, NYDIG clarified that the current decline from ATH is “fully in line with previous Bitcoin price cycles.” In fact, not only that, but he also pointed out that it is not as deep as it has been on other occasions.
Therefore, he said that even if it declines further, it will remain within its normal bull market behavior. specifies that This does not mean that the current upward cycle is overUntil you get your ATH back.
Understanding this, he believes that “investors should be prepared for regular declines of more than 10%.” He explains that they “have to be prepared for the inevitability of such events, because, like all other financial markets, progress does not always happen in a straight line.”
According to NYDIG, the Fed has taken a positive step towards Bitcoin
NYDIG referenced that the decline that occurred in BTC a few days ago was partly caused by the performance of Bitcoin exchange-traded funds (ETFs) in the United States. As CryptoNoticias shared, their highest weekly output was recorded after two months of continuous inflows sending prices soaring. However, the company shed a positive light.
In summary, he noted that the Federal Reserve (Fed) was moderate, keeping interest rates unchanged, but leaving the possibility of future cuts open. “This week helped push most assets higher,” he said.
Faced with a Fed move that envisions a more prosperous macroeconomic situation, ETF outflows slowed and demand increased. That is why, as a result, the price of Bitcoin has recovered from US$60,000 by now.
An analysis shared by CryptoQuant indicates that, in this scenario, an increase in the purchasing power of institutional investors and whales is expected to occur before the middle of the year. He warned that this would encourage buying of Bitcoin and increase its price.
