Despite the fact that a “crypto crash” may seem terrifying, Bitcoin has crashed before. In reality, it has occurred several times between 2011 and the Bitcoin crisis of 2022.
Here is a brief summary of all Bitcoin collapses during the last 11 years.
Bitcoin Crash 2011
The first Bitcoin collapse occurred in 2011, and it was attributed to the hacking of Mt.Gox.
The biggest cryptocurrency exchange at the time, where most BTC was stored and exchanged, was Mt. Gox. The price of one Bitcoin decreased from 39 USD to 0.01 USD almost instantly as a result of the network’s targeted assault.
Bitcoin Crash 2013
In 2013, the Chinese government outlawed the trade and storage of Bitcoin by banks and other financial organizations. As a result, after hitting an all-time high of 1,151 USD on December 3, 2013, the price of Bitcoin fell by nearly 50% on December 17.
Following that, in 2014, there were rallies followed by yet another sharp decline. And the price of bitcoin dropped below 200 USD in January 2015.
Bitcoin Crash 2018
In 2018, the price of bitcoin saw its largest decline ever.
Due to a surge in public interest, Bitcoin suffered a bubble around the end of 2017. BTC’s value had been steadily increasing, but on December 27, 2018, it suddenly fell drastically as profit-seeking speculators dumped their coins into the market. As a result, the price fell below 12,000 USD.
In addition, there have been hacking incidents in Japan and South Korea. The instances gave rise to fears that several nations will outlaw Bitcoin.
Bitcoin Crash 2020
It would be an understatement to say that Covid-19 had a detrimental affect on almost everything. The epidemic had an impact on the equities market, which crashed because many investors chose not to sell their holdings or spend their money. As a result, Bitcoin has trouble holding onto its value.
From the starting price of 7,911 USD to 4,970 USD in a single day, the price of Bitcoin decreased by 37%.
Bitcoin Crash 2021
Negative perception of the cryptocurrency market is a consequence of the decrease in global equities brought on by the distribution of new Covid-19 versions and the rise in the Fed Funds Rate, or interest rate. As investors opted for assets with lesser risks, the combination of these factors would decrease market liquidity and restrict capital flow into crypto assets.
The uncertainty around tighter cryptocurrency laws in a number of nations, notably China, was another factor in the 2021 Bitcoin drop. All banks and other financial institutions are not permitted to provide any services related to crypto assets in China, according to the government.
Additionally, Elon Musk’s business Tesla revised its original intention to start accepting Bitcoin-based transactions in April 2021. The value of the coin dropped by 51% as a result.
Bitcoin Crash 2022
The market cap of Bitcoin fell by 40% in January 2022, starting the collapse that resulted in a loss of more than 1.2 trillion USD. The price of Bitcoin hasn’t climbed back above 50,000 USD since January 2022.
The crisis between Russia and Ukraine, record-high inflation, and worries that the Federal Reserve will adopt tougher monetary policies are cited by experts.
According to a Time.com report from April 18, 2022, the price of Bitcoin fell below 40,000 USD.
The next Bitcoin crash? The warning indications are listed below.
The deterioration in consumer confidence is one of the warning signs of a Bitcoin meltdown. According to many analysts, the loss of customer confidence may be one of the worst developments for the market since neither purchasing activity nor medium-term investment is occurring.
Reduced activity in the market for digital assets is another indicator since it shows that investors are taking their money out or not buying Bitcoin.