Bitcoin Holds Ground Above $80K Despite Drawdowns

YEREVAN (CoinChapter.com) — Gold reached an all-time high of $3354 on April 16, while Bitcoin held firmly above $80,000.

Bitcoin (BTC) held firm above crucial levels as market attention turned to U.S. macroeconomic data and the potential for more stimulus.

As of Monday morning, Bitcoin was trading at around $80,700. It had faced selling pressure as it approached the $85,000 zone earlier in the year. However, it managed to recover quickly from each setback, suggesting underlying strength.

According to Glassnode’s latest report, Bitcoin’s current cycle was showcasing a change in investor behavior. The deepest drawdown so far was close to 32%, which is milder compared to prior bull markets where corrections exceeded 50%.

Median drawdown for the 2022+ cycle was at -7%, the shallowest on record. In past cycles like 2011–2013 and 2018–2021, median pullbacks reached -22% and -19% respectively. But now, investors appeared more comfortable absorbing volatility rather than exiting positions.

This supports Bitcoin’s broader uptrend and suggests a more resilient market structure.

Since early 2025, each price correction was also more controlled. Capital remained in the market even during weakness, confirmed by the “Realized Cap Net Position Change.” The realized cap has steadily grown, reaching $872 billion by April. It continues to expand at a rate of +0.9% per month.

This shows that long-term investors are adding to positions rather than reducing exposure. Alongside this, realized profits and losses remained largely balanced.

This balance indicates a neutral capital flow environment, which limits the potential for whipsaw volatility and has helped Bitcoin to consolidate above $80,000 with minimal drawdowns.

According to Glassnode’s “Percent Supply in Profit Oscillator,” around 75% of the Bitcoin supply is in profit, which is exactly at the long-term average. This level indicates investor confidence and less willingness to sell. Earlier in the cycle, profit supply peaked at 91% but the return to the mean suggests consolidation, not panic.

Bitcoin and Gold Surged Amid Bond Market Stress

Capital continues to rotate into hard assets. Gold’s 26% year-to-date rise reflects growing demand for monetary hedges as investors moved funds out of traditional markets with bond yields becoming unstable.

Between early 2025 and April, U.S. Treasury yields fluctuated between 3.7% and 4.5%, triggering volatility in both bond and equity markets.

These rapid fluctuations are placing stress on markets, according to Glassnode. The MOVE Index, which measures volatility in Treasury options, spiked sharply. Simultaneously, the VIX index reached levels last seen during past systemic shocks like 2008 and 2020.

These developments parallel broader investor anxiety and shrinking liquidity conditions. In response, capital shifted toward alternative reserves.

As traditional benchmarks lost appeal, both Bitcoin and gold saw strong gains. Bitcoin rebounded from the $75,000 zone to trade above $80,000. Meanwhile, Gold futures reached a new all-time high of $3,354.

Their parallel performance and recovery from recent volatility highlight their growing role as global neutral stores of value, largely free from centralized monetary policy.