Bitcoin’s drawdown shouldn’t be blamed on US shutdown or AI: Analysts
Summary
An onchain analyst suggests that past Bitcoin plunges have historically paved the way for future gains, indicating potential for upward movement despite current market volatility. This insight highlights the cyclical nature of Bitcoin's price trends.
Key Insights
Why do analysts say Bitcoin’s price drawdowns are not caused by external events like government shutdowns or AI developments?
Analysts suggest that Bitcoin’s price drawdowns are part of its inherent cyclical nature, historically driven by internal market dynamics such as halving events and speculative cycles, rather than external factors like government shutdowns or AI advancements. These drawdowns have typically preceded periods of significant gains, indicating that they are a normal phase in Bitcoin’s recurring price cycles.
Sources:
[1]
How do past Bitcoin plunges relate to future price gains?
Historically, major Bitcoin price plunges have been followed by substantial recoveries and new all-time highs within 2–3 years. This pattern is attributed to Bitcoin’s cyclical price behavior, where periods of sharp declines (drawdowns) often set the stage for the next phase of upward movement, regardless of short-term market volatility or external events.
Sources:
[1]