Bitcoin Stands 55% Below Its Peak, but Earlier Crashes Were Far Worse

Bitcoin is roughly 55% below its most recent peak, according to the shared comparison. That sounds steep, but historically BTC has survived far bigger crashes. In earlier cycles, Bitcoin lost anywhere from 70% to more than 90% of its value.

Bitcoin crashes are getting less severe

The steepest decline in the overview came in 2011, when Bitcoin plunged 93% from its top.

During the bear market of 2013 to 2015, the maximum drawdown was around 85%. In 2018 there was another heavy crash of 77%, while in the 2022 bear market Bitcoin lost approximately 73% from its peak.

At 55%, the current decline is considerably smaller:

• 2011: 93%
• 2013 to 2015: 85%
• 2018: 77%
• 2022: 73%
• 2026: 55%

Volatility seems to be slowly declining

The figures show a clear pattern. Every major Bitcoin crash in the overview has been less severe than the one before it.

That could fit with a market that is maturing. Bitcoin now has a much larger market capitalisation and more institutional participation than in the early cycles. ETFs, among other things, have made BTC accessible to a wider group of investors.

Still, caution is needed before drawing conclusions. The current cycle is not over, and nobody knows in advance whether 55% truly marks the bottom.

The historical numbers therefore offer no guarantee that Bitcoin will recover from here. Above all, they show that declines of more than 50% have historically been far from unusual for Bitcoin.