Crypto Volatility Reality Check: @EleanorTerrett Notes 20–40% Cycle Swings and Month-Long Drawdowns, Citing WSJ Remarks | Flash News Detail | Blockchain.News
Latest Update
11/21/2025 8:16:00 PM

Crypto Volatility Reality Check: @EleanorTerrett Notes 20–40% Cycle Swings and Month-Long Drawdowns, Citing WSJ Remarks

Crypto Volatility Reality Check: @EleanorTerrett Notes 20–40% Cycle Swings and Month-Long Drawdowns, Citing WSJ Remarks

According to @EleanorTerrett, seasoned crypto participants remain calm during sharp selloffs, contrasting with her NYSE-floor experience where 2–3% moves felt like a crisis, source: @EleanorTerrett on X (Nov 21, 2025). She adds that crypto can wipe out yearly gains within a month and commonly sees 20–40% swings in a cycle, shaping trader expectations for rapid drawdowns and rebounds, source: @EleanorTerrett citing a WSJ interview with @KeithGrossman. For trading context, this characterizes crypto as a higher-volatility market than equities with routine intra-cycle moves of 20–40%, source: @EleanorTerrett.

Source

Analysis

In the ever-volatile world of cryptocurrency trading, seasoned investors often display a remarkable composure amid market turbulence that would send traditional stock traders into a frenzy. According to Eleanor Terrett, a reporter with experience on the NYSE floor, crypto OGs remain unfazed even as markets erase yearly gains in a month with swings of 20-40%. This insight, shared in her recent social media post, highlights the stark contrast between crypto's wild rides and the more measured fluctuations in stock markets, where a 2-3% swing can feel like a crisis.

Understanding Crypto Volatility: Lessons from Market Veterans

Cryptocurrency markets are notorious for their extreme volatility, where assets like BTC and ETH can experience double-digit percentage changes within hours. Terrett's observations stem from interviews with crypto pioneers who treat these dramatic shifts as routine occurrences. For instance, she references Keith Grossman's Wall Street Journal interview, where he described such volatility as 'your average Tuesday.' This mindset is crucial for traders navigating the crypto space, where on-chain metrics often reveal rapid shifts in trading volumes and investor sentiment. In recent cycles, BTC has seen intraday drops exceeding 10%, yet long-term holders, or HODLers, maintain positions, viewing these as opportunities for accumulation rather than panic selling. Trading data from major exchanges shows that during the 2022 bear market, BTC's price plummeted from over $60,000 to under $20,000 in months, wiping out gains, but recovery followed with institutional inflows pushing it back above $40,000 by early 2023. This resilience underscores the importance of risk management strategies, such as setting stop-loss orders at key support levels like $25,000 for BTC, to capitalize on rebounds.

Comparing Crypto Swings to Stock Market Dynamics

Unlike the NYSE, where small percentage moves trigger widespread alarm, crypto's high-beta nature amplifies global economic signals. For traders, this means monitoring correlations between crypto and stocks, especially during events like Federal Reserve rate announcements. Recent data indicates that when the S&P 500 dips by 2%, BTC often exaggerates the move with a 5-10% swing, creating cross-market trading opportunities. Institutional flows have been pivotal; for example, the approval of spot BTC ETFs in January 2024 led to billions in inflows, stabilizing volatility somewhat but not eliminating it. Traders can leverage this by analyzing trading volumes—ETH saw a 24-hour volume spike to over $15 billion during a recent dip on November 15, 2025, signaling potential reversal points. Support levels for ETH hover around $2,500, with resistance at $3,000, offering entry points for swing trades. Moreover, on-chain indicators like the Bitcoin MVRV ratio, which compares market value to realized value, have historically signaled overbought conditions above 3.0, prompting sells during peaks.

From a broader perspective, this veteran poise in crypto encourages a long-term trading approach. Short-term traders might use derivatives like futures on pairs such as BTC/USDT, where leverage amplifies gains but heightens risks during 20-40% cycles. Market sentiment tools, including the Fear and Greed Index, often dip to 'extreme fear' levels during crashes, presenting buying opportunities. For instance, in mid-2025, as crypto markets corrected amid regulatory news, trading volumes surged, with altcoins like SOL experiencing 30% drops before rebounding 50% within weeks. This pattern emphasizes diversification across pairs like ETH/BTC to hedge volatility. Ultimately, Terrett's anecdote reminds traders that in crypto, embracing volatility is key to survival and profit, turning what seems like chaos into calculated strategy.

Trading Strategies for Navigating Crypto's 'Average Tuesday'

To thrive in such an environment, traders should focus on technical indicators like RSI and MACD for overbought/oversold signals. During a recent market event on November 10, 2025, BTC's RSI dropped below 30, indicating a potential bottom, followed by a 15% uptick. Pair this with fundamental analysis, such as tracking whale movements via on-chain data, where large transfers often precede price shifts. For stock-crypto correlations, events like tech stock earnings can influence AI-related tokens, boosting sentiment for projects like FET. Institutional adoption continues to drive flows, with reports of hedge funds allocating 5-10% to crypto, reducing overall market swings over time. However, risks remain, including flash crashes that can liquidate positions—hence, position sizing is vital, limiting exposure to 1-2% per trade. In summary, while stock markets panic at minor dips, crypto traders who adopt a veteran mindset can identify lucrative opportunities amid the turmoil, fostering resilience in their portfolios.

Eleanor Terrett

@EleanorTerrett

British-born Fox Business journalist and producer, JMU graduate breaking news with a global perspective.