Part 5/12:
Historical data indicates Bitcoin often falls 70-80% from its cycle high, with altcoins experiencing drops of over 90%. Guy notes that some believe declines might not be as severe this time, citing increased institutional involvement and regulatory developments, yet caution is advised.
Understanding that most bottoming events are driven by debt liquidation and forced sales helps refine expectations. Recognizing that sharp declines and prolonged bear phases are part of the cycle allows investors to avoid panic-selling and to plan for a potential multi-year recovery.