The price of Bitcoin (BTC) experienced one of its most brutal falls in 2022with BTC plummeting below $20,000 in June after having reached a high of $68,000 in 2021.
June 2022 has become the worst month for Bitcoin since September 2011, given that their monthly losses amounted to 40%. The cryptocurrency also posted its biggest quarterly losses in 11 years.
However, the current market sell-off does not make Bitcoin crashes and bear markets unique to 2022. In fact, Bitcoin has survived several crypto winters since the first Bitcoin block, or the genesis block, was mined in January 2009..
As we zoom in on the Bitcoin price chart, Cointelegraph has picked up five of the most notable price drops in the history of the seminal cryptocurrency.
Bear Market #1: Bitcoin crashed from $32 to $0.01 in 2011
Time to retest previous maximum: 20 months (June 2011-February 2013)
Bitcoin price broke his first major psychological mark of $1.00 in late April 2011 for Start its first rally in history to reach $32 on June 8, 2011. But the joy did not last long, as the value of Bitcoin plummeted to hit a low of $0.01 over the course of a few days.
The abrupt sale was largely attributed to security concerns at the now-defunct Mt. Goxa Japanese cryptocurrency exchange that traded the majority of Bitcoin at the time. The exchange suffered the theft of 850,000 BTC due to a security breach on its platform, raising serious concerns about the safety of Bitcoin amounts stored on exchanges..
With close to 99% of the value of BTC lost in just a few days, this June 2011 flash crash became a huge part of Bitcoin history. The event opened a long period before the BTC price recovered to the previous high of $32 and climb to new highs only in February 2013.
haha nice #bitcoin crash to 0.01 USD/BTC. http://t.co/jNx8rAr
—Who Knows? ₿⚡️ (@who_knows) June 19, 2011
Haha nice #bitcoin drop to 0.01 USD/BTC.
– Who knows?
It is difficult to trace the price of Bitcoin before 2013 when compared to the most recent charts.. The most popular price tracking services and sites like CoinGecko or CoinMarketCap do not track Bitcoin prices before April 2013.
“Bitcoin was in its infancy before 2013 and there weren’t many places trading Bitcoin at the timeCoinGecko COO Bobby Ong told Cointelegraph, adding that CoinGecko has not received many requests for data prior to 2013, so it is not a priority for the platform.
Bear Market #2: Bitcoin Falls from $1,000 to Below $200 in 2015
Time to retest previous high: 37 months (Nov 2013-Jan 2017)
According to BTC price data collected by Cointelegraph, the price of Bitcoin reached $100 in mid-April 2013 and then continued to rise to briefly hit $1,000 in November 2013.
Bitcoin entered a massive bear market shortly after hitting $1,000 for the first time in history, with the price of BTC falling below $700 a month later. The price drop came as the Chinese central bank began to crack down on Bitcoin in late 2013.prohibiting local financial institutions from transacting with BTC.
cryptocurrency continued to plummet for the next two years, bottoming out around $360 in April 2014 and then falling further to hit a low of $170 in January 2015.
The long crypto winter of 2014 was associated with the hacked cryptocurrency exchange Mt. Goxwhich stopped all Bitcoin withdrawals in early February 2014. Next, the platform suspended all trading and eventually went bankrupt in Tokyo and the US.
Some of the major financial authorities also raised their concerns about Bitcoin.and the US Commodity Futures Trading Commission claimed it had power over “Bitcoin price manipulation” in late 2014.
The general sentiment around Bitcoin was mainly negative until August 2015, when the trend began a long-term turnaround.. Amid the strong bull market, Bitcoin finally returned to the $1,000 price mark in January 2017. This was the longest price recovery period of all time in Bitcoin history.
Bear Market #3: Bitcoin Sinks Below $3,200 After Hitting $20,000 in December 2017
Time to retest previous high: 36 months (Dec 2017-Dec 2020)
After recovering to $1,000 in January 2017, the price of Bitcoin continued to rise, reaching $20,000 by the end of that year..
However, like Bitcoin’s previous all-time high of $1,000, the $20,000 triumph was short-lived, as the price of BTC subsequently fell and lost more than 60% of its value in a couple of months.
The year 2018 quickly became known as a “crypto winter” as the Bitcoin market continued to shrink, and BTC bottomed out around $3,200 in December 2018.
Crypto winter started with security issues at Coincheckanother Japanese cryptocurrency exchange. In January 2018, Coincheck suffered a massive hack resulting in a loss of around $530 million worth of NEM (XEM) cryptocurrency..
The bear market was further intensified when tech giants like Facebook and Google banned initial coin offering ads and token sale ads on their platforms in March and June 2018respectively.
Global crypto regulation efforts also contributed to the bear marketas the United States Securities and Exchange Commission rejected applications for BTC exchange-traded funds.
Bear Market #4: BTC Crashes from $63,000 to $29,000 in 2021
Time to retest previous high: six months (April 2021-October 2021)
Bearish sentiment dominated the cryptocurrency market until 2020, when Bitcoin not only returned to $20,000, but entered a massive bull run, breaking above $63,000 in April 2021.
Even though 2021 turned out to be one of the biggest years for Bitcoin, with the cryptocurrency surpassing a trillion dollar market capitalizationBitcoin also suffered a slight drawback.
Shortly after breaking new all-time highs in mid-April, Bitcoin fell slightly, and its price fell to $ 29,000 in three months.
The 2021 mini bear market came amid a growing media narrative suggesting that Bitcoin mining has an environmental, social and corporate governance (ESG) issue.for its acronym in English).
Global ESG-related FUD around Bitcoin had been further exacerbated by Elon Musk’s electric car firm Tesla abandoning Bitcoin as payment in May, with the CEO citing ESG concerns. Just three months later, Musk admitted that around 50% of Bitcoin mining was powered by renewable energy..
The cycle of FUD pic.twitter.com/OC8kGXAUSd
— Lina Seiche (@LinaSeiche) June 20, 2021
The FUD cycle.
The bear market did not last long even though China began a major crackdown on local mining farms. The uptrend returned at the end of July, and Bitcoin ended up rising to its still-unbroken all-time high of $68,000, recorded in November 2021..
Bear Market #5: Bitcoin Crashes from $68,000 to Below $20,000 in 2022
Time to Retest Previous High: TBD
Bitcoin failed to break above $70,000 and started falling in late 2021. cryptocurrency has plunged into a bear market since November last year, posting one of its biggest drops ever in 2022.
In June, the cryptocurrency dipped below $20,000 for the first time since 2020.fueling extreme fear in the market.
The ongoing bear market is largely attributed to the algorithmic stablecoin crisis —specifically, the stablecoin TerraUSD Classic (USTC)— which are designed to support a stable 1:1 peg to the US dollar via blockchain algorithms rather than equivalent cash reserves.
USTC, which was a major algorithmic stablecoin, lost its peg to the dollar in May. The decoupling of USTC triggered a mass panic in the broader crypto markets, as the stablecoin had managed to become the third largest stablecoin in existence before crashing..
The collapse of Terra caused a domino effect on the rest of the cryptocurrency market due to massive liquidations and uncertainty that fueled a crisis in cryptocurrency lending. Several global cryptocurrency lenders, such as Celsius, had to suspend withdrawals due to their inability to maintain liquidity amid brutal market conditions..
Historically, Bitcoin has traded below previous highs for more than three years. The previous peak of $68,000 took place just seven months ago, and if and when Bitcoin will hit new heights again remains to be seen.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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