(Seoul=Yonhap Infomax) Min Jae Lee – The US investment media outlet Motley Fool has analyzed that while Bitcoin's recent performance has been lackluster, the current downturn does not constitute a crash when viewed in the context of the asset's historical performance.


On the 23rd (local time), Motley Fool pointed out, "Bitcoin has shown a distinct weakness compared to the stock market and commodities, prompting economic media to start discussing a so-called '2025 Bitcoin crash' as if the market has collapsed."


Motley Fool noted, "Investors who prioritized allocating capital to Bitcoin over alternatives such as gold or index funds have missed out on significant growth opportunities," adding, "Those observing the underperformance may feel somewhat foolish, and this emotional disconnect is what makes the crash narrative seem plausible."


However, the outlet stated, "Despite Bitcoin falling 24% over the past three months, it is down only 6% year-to-date," emphasizing, "It is difficult to even call this a crash."


The report analyzed, "Historically, Bitcoin's peak-to-trough declines have typically reached around 80%, as seen in 2011, 2015, and 2018, and most recently, the 2022 bear market saw a drop of about 77%."


Motley Fool assessed, "From this perspective, the recent 24% decline from the peak is more akin to a typical correction phase than a once-in-a-decade catastrophe."


The outlet further added, "Even during healthy bull markets, sharp swings of 20% to 30% have been common throughout Bitcoin's history."


Motley Fool acknowledged that with the macroeconomic environment deteriorating and outflows from Bitcoin exchange-traded funds (ETFs) accelerating, there is a possibility of short-term weakness, especially if investors begin to panic.


However, it asserted, "Calling such moves a crash overlooks how extreme Bitcoin crashes have historically been," and added, "If a true collapse were underway, there would be no room for debate as there is now."


Motley Fool also emphasized that since Bitcoin itself is unlikely to change, there is no need to alter investment strategies.


The outlet explained, "Bitcoin's supply remains fixed, and future new supply will become even more limited due to halving events," adding, "On the demand side, institutional adoption continues to progress in a favorable direction."


It continued, "While ETFs are currently experiencing outflows, it remains much easier for investors to gain exposure to the asset," and "Digital Asset Trust (DAT) companies are still accumulating virtual assets with the goal of permanent holding."


Meanwhile, as of 09:20 a.m. KST, Bitcoin was trading at $86,066 on Binance, down 0.88% from the previous session.

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mjlee@yna.co.kr

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