Is the crypto world in panic again? History tells us what will happen next.

How terrifying is it now

BTC, ETH, and SOL have really plummeted in the last few months. The fear index has now dropped to “extreme fear” levels—similar to the levels during the COVID crash, FTX collapse, and flash crash. Many people are starting to say that the crypto market is going to cool off, and they are preparing for the worst.

But this is actually not the first time. If you are panicking right now, you might as well take a look at what history says.

Is the historical data heart-wrenching?

Since 2017, BTC has experienced more than 10 pullbacks of over 25%, with 6 of them exceeding 50% and 3 approaching 75%. Each time it ultimately rebounded to a new high.

What is even more heart-wrenching is: extreme panic is often the night before a significant rise. The panic index in April this year was also frightening, and what happened later? It rebounded.

Based on the performance of the past three years, those previous “extreme fears” did not indicate anything about a long-term bear market.

The next plot is as follows

The cryptocurrency market cycle usually goes like this: rapid rise → sharp decline → long-term consolidation → new highs.

Where are we now? Right in the “consolidation period after the crash.” According to historical patterns, we will soon enter the “boredom period” — where everyone loses interest in the market and retail investors become silent. However, during this time, the underlying development actually doesn’t stop:

• RWA (Real-World Asset Tokenization on the Blockchain) grew by 2.3% in the past 30 days, reaching a total size of $35.7 billion.
• These infrastructures accumulate silently, paving the way for the next wave of market trends.

Where is the real risk?

In the short term, the market still faces several black swans:

• The stock market is on the verge of collapse (AI stock valuation bubble)
• Uncertainty in tariffs and trade policy
• Interest rate expectations fluctuate

These factors could indeed turn a “correction” into a “real bear market” or even a “crypto winter.”

But this is not a reason not to buy

The history of the cryptocurrency world proves one thing: those who persist in buying during pessimistic times make a profit. Whether it's buying the dip or dollar-cost averaging, as long as you believe in the project, the lower the price, the more you should buy.

BTC, ETH, and SOL as leading assets will not disappear— even if they drop further, that will be an opportunity to get on board. Especially if you were optimistic about them last year, there is even less reason to sell now.

The logic of history is very simple: Be fearful when others are greedy, and be greedy when others are fearful. You know in your heart what time it is now.