Viewpoint: A drop of over 30% from Bitcoin’s all-time high is considered normal volatility; it has previously fallen by more than 55%.

On December 4, according to CNBC, the price of Bitcoin recently dropped about 36% from its all-time high of $126,000 to below $81,000. However, data shows that such a pullback is a routine occurrence in Bitcoin’s history. Currently, Bitcoin’s trading price has rebounded to break through $93,000, down about 26% from its all-time high. Data indicates that during the Bitcoin cycles of 2021 and 2017, there were several drops of the same or even greater magnitude. Historical data shows that after such corrections, Bitcoin typically rebounds to new all-time highs. For example, Bitcoin dropped over 55% from April to June 2021, then rebounded to a new high in November that year. Jacob Joseph, Senior Research Analyst at CoinDesk Data, said that based on previous cycles, such volatility is consistent with the long-term trend. In this cycle, Bitcoin has already experienced a 32.7% correction from March to August 2024, and a 31.7% drop from January to April 2025. Lucy Gazmararian, founder of Token Bay Capital, stated that the recent price fluctuations are related to the largest forced liquidation event in crypto history.