The global crypto market is showing signs of stabilization after one of the most volatile weeks of the year. Total market capitalization stands at $3.88 trillion, up 0.28% in the last 24 hours. Bitcoin reached a new all-time high earlier this week, even as the market endured its largest leverage wipeout in history. Nearly $19 billion in open interest was erased, causing funding rates to reset and speculative positions to unwind.
Despite the shake-up, Bitcoin has recovered quickly and now trades near $113,381, with a 1.44% daily gain and over $70 billion in 24-hour trading volume.
According to Mark Yusk, founder of Morgan Creek Capital, Bitcoin’s growth shows the steady decline in the value of traditional currencies worldwide.
Bitcoin Rises as Currencies Lose Value
On the Thinking Crypto podcast, Yusko said that Bitcoin’s upward move is closely tied to the weakening of fiat currencies. As nations continue to print money and devalue their currency, Bitcoin’s price in dollars, yen, and euros naturally moves higher.
He said that many people focus too much on Bitcoin’s dollar price, while in other parts of the world, the digital asset has already been setting records for years. In countries like Turkey and Venezuela, where local currencies have lost nearly all their value, Bitcoin has consistently reached new highs.
Historical Cycles Show a Predictable Pattern
Bitcoin’s price cycles tend to follow a clear timeline. In both the 2017 and 2021 cycles, the time from market peak to bottom was 364 days. The time from cycle low to cycle high was 1,064 days, and that same duration marked the latest peak this month.
Some analysts had predicted this timing years ago, meaning that Bitcoin’s long-term price movement still follows a consistent rhythm despite short-term volatility.
Smaller Bear Market Expected
Yusko says any future decline in Bitcoin’s price will be less severe than in past cycles. Earlier bear markets saw drops of more than 70 percent, but he expects the next one to be much smaller, possibly in the range of 15 to 20 percent.
He explained that Bitcoin is now closer to its fair value and that growing institutional participation has helped reduce extreme volatility. If the recent high proves to be the peak, he expects prices to stabilize above $100,000 rather than fall sharply as they did in previous cycles.
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