Bitcoin has fallen from a record high of roughly $126,080 in October to trade recently in the low-$60,000s — a decline of nearly 50% that has rattled sentiment. But it may just be business as usual. 

According to a Thursday report from asset manager VanEck, Bitcoin’s current slump tracks the asset’s historical four-year halving cycle, in which mining rewards are periodically cut in half, tightening new supply and often preceding a bear phase. The firm framed this downturn as a recurring feature of Bitcoin’s market structure rather than a break from it.

VanEck’s GEO framework — which tracks Global Liquidity, Ecosystem Leverage, and On-Chain Activity — currently shows two of three signals reading neutral, with ecosystem leverage in constructive territory. The firm says that combination points to early signs of a bottom forming, and that it may be time to begin scaling into positions.

Separate research from blockchain analytics firm CryptoQuant points in a similar direction. The firm’s analysts highlighted on-chain data showing that long-term Bitcoin holders — typically the market’s steadiest, most loss-tolerant cohort — are now sitting on deeper unrealized losses than the market overall, based on adjusted Net Unrealized Profit/Loss (NUPL) data. 

Analyst MorenoDV noted this week that this exact dynamic, long-term holders hurting more than average, has shown up at every prior major cycle bottom.

Still, CryptoQuant urged caution against declaring a bottom prematurely. In past cycles, that same long-term-holder metric fell to much deeper negative extremes before a true low was reached. 

Current readings haven’t gotten there yet, meaning the biggest cryptocurrency could still face one more sharp capitulation move — unless stronger institutional demand and a more resilient holder base allow this cycle to bottom out with less damage than previous ones.

Taken together, the two reports suggest a market that looks stressed by historical standards, but not yet at the extremes that have marked past cycle floors.