- Bitcoin has matured through volatility cycles, with reduced drawdowns indicating stronger market resilience amid geopolitical tensions and tariff news.
- Despite tariff-related shocks in 2024, Bitcoin’s market showed calm consolidation, reflecting growing holder conviction and belief in long-term value.
- Bitcoin’s infrastructure has evolved post-China mining ban, with reduced panic-driven selloffs, stronger support levels, and enhanced market maturity.
The 2021–2025 price history of Bitcoin shows a shaky but growing market structure. Despite economic and geopolitical challenges, Bitcoin has experienced declines and new all-time highs. Most recently, a 28% correction followed “Trump’s tariff war” in late 2024. Despite this, the market response remains calm, signaling consolidation rather than crisis.
In contrast, the 2021 mining ban in China caused a 53% crash, exposing vulnerabilities within Bitcoin’s infrastructure. That event triggered a sharp loss in investor confidence. Now, the market appears more resilient, showing greater maturity in response to external pressures.
Volatility Cycles Show Reduced Drawdown Severity
As per analyst Axel analysis from CryptoQuant Platform, Bitcoin’s historical data highlights multiple cycles of euphoria followed by corrections. The steepest drawdown occurred in 2022–2023 with a 75% plunge. This marked the lowest point during the observed four-year period. However, the drawdown intensity appears to be decreasing with each major cycle.
For example, the 53% correction post-China ban has not repeated. The recent 28% drop suggests holders now react less dramatically to macroeconomic events. This shift is visually reinforced by a diagonal arrow connecting both points.
Besides, red vertical markers show “Euphoria Zones” preceding each correction. These zones appeared in 2021, early 2024, and mid-2024. Price spikes in these periods reflect speculative sentiment. However, such euphoric phases are followed by necessary corrections. Hence, the 28% drop seems like routine market behavior rather than a threat to Bitcoin’s fundamentals.
Holders Prioritize Tech Over Trade Shocks
The reaction to trade-related events has been notably measured. Unlike the mining ban, which shook core trust, tariff news triggered mild concern. Consequently, the current pullback doesn’t mirror past panic-driven selloffs. Moreover, price action shows strong support around $45,000–$50,000, which now serves as a psychological reference level.
Additionally, the CryptoQuant based on daily on-chain data, confirms strengthening long-term holder conviction. Despite volatility, belief in Bitcoin’s long-term value continues to grow. This conviction has become the backbone of the current market structure. Bitcoin reached a new ATH near $106,700 in late 2024. This rise occurred despite facing multiple global stressors.
