The drop in Bitcoin by more than 30% from its all-time high has highlighted the volatility characteristic of cryptocurrencies. However, historical data indicates that such fluctuations are part of Bitcoin’s normal operating pattern and often precede a new rally, CNBC reports.

At the end of November, Bitcoin’s price fell to $80 000, which is 36% below the all-time high of $126 000 reached earlier in October. As of Thursday, Bitcoin is trading around $93 000, having recovered some of its losses but still 26% below its peak.

Analysts note that despite the alarming numbers, the current correction is within the historical bounds of market cycles:

Current cycle. According to CoinDesk Data, Bitcoin has already experienced a pullback of 32.7% from March–August 2024 and 31.7% from January–April 2025.
2017 cycle. That year, there were two crashes of about 40% and a 29% drop in November, before a new record was set in December.
2021 cycle. There were declines of 31% and 26% early in the year, followed by a correction of over 55% (amid China’s mining ban), after which the market recovered to new highs in November.
“Looking at previous cycles, you can say that volatility of this scale is in line with long-term trends,” said Jacob Joseph, senior analyst at CoinDesk Data.

Investor sentiment is being dampened by fears about the end of the “bull” market. Typically, a “crypto winter” is characterized by a price drop of 70–80% from the peak. This has not happened yet, but the very possibility of such a scenario is causing market participants to act with caution.