Bitcoin

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<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin’s price drawdowns have not exceeded 20% in the current cycle, indicating a lack of a traditional bull market correction.</li>
 <li>The introduction of US spot Bitcoin ETFs has significantly altered Bitcoin market dynamics.</li>
</ul>
<p>Bitcoin sellers have not been able to trigger a typical correction in the bull market during this cycle, according to recent analysis.</p>
<p>The pseudonymous lead on-chain analyst at Glassnode, known as Checkmate, pointed out that price drawdowns for <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin (BTC)</a> have barely reached 20%.</p>
<h2 id="limited-pullback-despite-all-time-highs">Limited Pullback Despite All-Time Highs</h2>
<p>While Bitcoin has seen a retracement from its all-time highs near $74,000, the percentage-based corrections have been relatively minor.</p>
<p>This becomes even more evident when compared to previous bull markets. Checkmate shared data indicating that despite significant profit-taking and reactionary selling at peak levels, the market has only seen a maximum 20% downturn once.</p>
<p>Subsequent drawdowns did not surpass 15.8%. Checkmate stated that the market is absorbing massive sell-side days without managing a 20% pullback.</p>
<h2 id="contrast-with-previous-cycles">Contrast with Previous Cycles</h2>
<p>For comparison, the bull market cycle from 2019 to the end of 2021 experienced two pullbacks exceeding 50%, with one exceptional case in March 2020 due to COVID-19, reaching 61.4%.</p>
<p>Checkmate acknowledged that historical data suggests a significant pullback is likely. However, the surprising factor is that it hasn’t happened yet.</p>
<p>The dynamics of the Bitcoin market have undergone substantial changes in 2024. Among the significant shifts is the introduction of US spot Bitcoin exchange-traded funds (ETFs).</p>
<p>Since their launch in January, these ETFs have acquired over 500,000 BTC. This buy-side support, along with factors like multi-year lows in BTC balances on exchanges, is fuelling bullish sentiment for a return to price discovery.</p>
<p>Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, warned about getting too excited over the ETFs’ record-breaking performance. He noted that while the inflows have been impressive, without the ETFs, Bitcoin’s price would likely be around $30,000.</p>
<p>Balchunas further added that ETF products would experience days of net withdrawals, which is standard investor behavior.</p>

Bitcoin Attracts Over $100M: Bear Market Fails to Curb BTC Price Surge

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