According to Glassnode's latest report, Bitcoin (CRYPTO:BTC) has faced its sharpest decline in the current market cycle, dropping over 26% from its all-time high (ATH) between May and July 2024.

Despite this significant downturn, Glassnode notes that the drawdown is comparatively shallow compared to past cycles, reflecting a resilient underlying market structure as Bitcoin matures as an asset class.

The report highlights a surge in BTC held by short-term holders below their acquisition cost, exceeding 2.8 million coins, indicative of financial strain among newer investors.

However, Glassnode underscores that these losses, while substantial, remain manageable relative to the overall market size.

The analysis suggests that while short-term investor sentiment faces pressure, the outlook remains cautiously optimistic, contingent upon renewed demand to stabilise Bitcoin prices amid ongoing market fluctuations.