Bitcoin is down 32% from its ATH. As evident by the chart, huge drawdowns in bull markets are a common feature in bitcoin. However, the slow summer signals that the market is a different beast now compared to 2017, when sell-offs were frequent and absorbed rapidly.
This has a natural explanation. Until 2020, bitcoin and the crypto market, in general, had idiosyncratic price discovery processes. However, as bitcoin gradually got adopted by institutional investors, it naturally became more susceptible to developments in traditional markets in addition to its distinctive bitcoin-related news, such as Chinese bitcoin bans or nation-states adopting bitcoin.