Key Takeaways
- •Bitcoin’s latest decline has triggered panic, but analysts note the pattern matches past corrections.
- •Eric Balchunas says BTC has historically recovered from deeper crashes before hitting new highs.
- •The analyst cautions that Bitcoin remains highly volatile and suitable only for investors who can handle large swings.
But even as fear rises, some market analysts are calling the reaction exaggerated — not because the price isn’t dropping, but because the pattern is nothing new.
BTC is trading around $84,000, recovering slightly after a sharp intraday fall. The coin is still down more than 12% over the week, leaving sentiment fragile and split between dip-buyers and investors preparing for deeper losses.
Bitcoin Has a Long Track Record of Violent Corrections
To understand the divide, observers are revisiting Bitcoin’s history rather than its hourly chart. The asset has repeatedly gone through drawdowns far worse than the current one and has nonetheless broken new highs afterward.
That’s where Bloomberg senior ETF analyst Eric Balchunas entered the conversation. Responding to the latest wave of “Bitcoin is dead” commentary on social media, he reminded traders that the steepest BTC crashes — including ones far deeper than this — happened before every major peak.
Balchunas compared the pattern to what early shareholders of Amazon and Apple experienced: intense volatility on the way to long-term dominance.
Why Bitcoin Keeps Drawing Strong Reactions
Balchunas also pointed out that Bitcoin’s cultural impact plays a role in the emotional intensity of the debate. Across its history, the cryptocurrency has consistently challenged mainstream financial thinking, and that resistance has made it a target for critics. The phenomenon, he suggested, is part of why the asset never stays out of the spotlight — even when prices are moving down.
Volatility Still Isn’t for Everyone
Despite pushing back against “Bitcoin is finished” claims, Balchunas wasn’t selling the idea that BTC is a safe bet for all investors. He described Bitcoin’s volatility as something that must be respected, not ignored — suitable only for people who intentionally allocate to high-risk assets rather than treating it like a traditional investment.
Outlook
Bitcoin may continue to drop — or rebound — depending on trader appetite in the coming days. But the expert takeaway from Balchunas is that wild swings have always been part of Bitcoin’s DNA, and that the current correction does not, by itself, signal the end of the cycle.