Glassnode: The severity of market pullbacks during the Bitcoin bull market is gradually weakening

ChainCatcher news, on-chain analytics company Glassnode disclosed data showing that although the significant price increases during Bitcoin bull markets are usually accompanied by extreme selling pressure, the severity of market pullbacks during each bull market has gradually diminished as the market size expands.

The deepest pullback of this cycle occurred on August 5, 2024, with a decline of 32%. During most pullbacks, the Bitcoin price only fell 25% below local highs, indicating that the volatility of this cycle is among the lowest to date.

This may reflect that the launch of spot ETFs has opened a huge demand window, while institutional investor interest continues to grow. The vast majority of short-term holders' supply (in terms of coin count) is operating "underwater" compared to their cost basis, but they have not endured extreme unrealized losses associated with market deterioration.