Usman Salis
⬤ Bitcoin recently dropped to $94,500, marking a 25% decline from its all-time high of $126,000 reached on October 6. While this pullback might seem dramatic, historical data reveals it's actually quite tame for Bitcoin. A chart tracking major corrections since 2010 shows the cryptocurrency has regularly experienced much steeper drops—routinely surpassing 30%, 50%, and even 70% during earlier market cycles.
⬤ The current downturn comes as policymakers debate new tax rules for digital assets. Proposed changes include stricter capital gains reporting and higher taxes on crypto transactions. Some worry these measures could hit smaller firms hard during an already volatile period, potentially triggering bankruptcies and pushing crypto talent to countries with friendlier tax policies. This regulatory uncertainty adds another challenge to an already shaky market.
⬤ Looking at Bitcoin's track record, past corrections have been far worse than today's 25% dip. The data shows previous declines of 55%, 78%, and even over 90%. This pattern suggests Bitcoin goes through deep but temporary pullbacks that often lead to strong recoveries. The current drop fits this established cycle rather than signaling any fundamental market breakdown.
Usman Salis
