Bitcoin drops and rallies

Chart of Bitcoin's drawdown from its all-time high since 2010, with a table of the major drops, and the days the price has gone without a 5%, 10%, 20% or 30% drop or rally compared with what is usual.

What is Bitcoin's drawdown?

It is how far the price is below the all-time high reached up to that day. A 50% drawdown means Bitcoin is worth half of its peak. It is the most direct way to put a drop in context: whether it is a normal correction within an uptrend or a bear market of the kind that ends a cycle.

How long have the major drops lasted?

Bitcoin has suffered five drops of more than 70% since 2011: the 2011 crash (93%), the 2013 drop (71%) and those that followed the tops of the 2013, 2017 and 2021 cycles (85%, 84% and 77%). In the last three, the price took about a year to bottom and between two and a half and just over three years to recover the previous high.

How long does Bitcoin usually take to drop or rally 10%?

The drops and rallies table counts the days since the last drop and the last rally of each size and compares them with what is usual in the chosen period. Sizes that have gone longer without happening than on 90% of days in the period are highlighted, so you can see at a glance whether the market is calmer or more agitated than usual.

What does the current drop indicate?

Each major bear market has been somewhat shallower than the one before, in line with a larger market with more institutional investors. Corrections of 20% to 35% are common even in a full uptrend. Nothing guarantees that history will repeat: the Is BTC Cheap? index combines price with on-chain valuation, the cycle, liquidity and sentiment to estimate whether Bitcoin is cheap or expensive.