Convergence

Bitcoin

<h2 id="quick-take">Quick Take</h2> 
Last week, Oct. 18, analyst <a href="https://x.com/DylanLeClair_/status/1714677699699003518?s=20">Dylan Leclair</a> observed a similarity in the drawdowns of Bitcoin and TLT. 
A comparison of the drawdowns of Bitcoin and TLT, the U.S. long bond, an ETF with a total asset holding of <a href="https://etfdb.com/etfs/asset-class/bond/">$95 billion</a>, according to VettaFi, reveals a fascinating trend. Bitcoin, often under the scanner for its volatility, demonstrates resilience in its recovery trajectory. Following a plunge to $15,500 during the FTX collapse in Nov. 2022, Bitcoin has made a significant rebound, trading at roughly $30,000. This performance represents a drawdown of 56% from its all-time high, aligning with previous bear market behavior. 
Interestingly, each successive cycle records a less severe drawdown. The maximum drawdown of this cycle for Bitcoin to date stands at 77%. 
<figure id="attachment_367142" aria-describedby="caption-attachment-367142" style="width: 100%" class="wp-caption aligncenter">
 <img class="wp-image-367142 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/10/DD.png" alt="Price Drawdown from ATH: (Source: Glassnode)" width="1445" height="807" srcset="https://cryptoslate.com/wp-content/uploads/2023/10/DD.png 1445w, https://cryptoslate.com/wp-content/uploads/2023/10/DD-300x168.png 300w, https://cryptoslate.com/wp-content/uploads/2023/10/DD-1024x572.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/10/DD-768x429.png 768w" sizes="(max-width: 1445px) 100vw, 1445px">
 <figcaption id="caption-attachment-367142" class="wp-caption-text">
 Price Drawdown from ATH: (Source: Glassnode)
 </figcaption>
</figure> 
In contrast, TLT is currently witnessing its most severe drawdown ever, at 54%. This juxtaposition underscores the harsh impact felt in the bond market while simultaneously highlighting Bitcoin’s recovery. A mere few percentage points now separate the two drawdowns, adding a new dimension to the discussion on financial asset stability. 
<figure id="attachment_367145" aria-describedby="caption-attachment-367145" style="width: 100%" class="wp-caption aligncenter">
 <img class="wp-image-367145 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/10/tlt.png" alt="TLT Drawdown: (Source: Trading View)" width="1329" height="893" srcset="https://cryptoslate.com/wp-content/uploads/2023/10/tlt.png 1329w, https://cryptoslate.com/wp-content/uploads/2023/10/tlt-300x202.png 300w, https://cryptoslate.com/wp-content/uploads/2023/10/tlt-1024x688.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/10/tlt-768x516.png 768w" sizes="(max-width: 1329px) 100vw, 1329px">
 <figcaption id="caption-attachment-367145" class="wp-caption-text">
 TLT Drawdown: (Source: Trading View)
 </figcaption>
</figure> 
The post <a rel="nofollow" href="https://cryptoslate.com/insights/convergence-in-drawdowns-of-bitcoin-and-u-s-long-bonds-as-tlt-plunges/">Convergence in drawdowns of Bitcoin and U.S. long bonds, as TLT plunges</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

Convergence in drawdowns of Bitcoin and U.S. long bonds, as TLT plunges

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