Bitcoin Magazine
Will Bitcoin Price Defy Diminishing Returns This Cycle?
Every bitcoin price bull market to date has followed a familiar pattern of explosive upside followed by sharp drawdowns, with each cycle delivering lower percentage gains than the last. This phenomenon, known as diminishing returns, has become one of the most persistent narratives in Bitcoin. The question now is whether this cycle will follow the same trajectory or if the maturation of Bitcoin as an asset class could bend the pattern.
Bitcoin Price and Diminishing Returns
So far this cycle, we have witnessed approximately 630% BTC Growth Since Cycle Low to the most recent all-time high. That compares to more than 2,000% in the previous bull market. To match the last cycle’s magnitude, Bitcoin would need to reach around $327,000, a stretch that looks increasingly unlikely.
Figure 1: Cycle-over-cycle returns show declining multiples, but still strong absolute gains. View Live Chart
Evolving Bitcoin
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