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Published by Programme B
Being a part of the crypto space for a long period, you might get concerned about Bitcoin’s price crash touching point zero. You will be amazed to know about Bitcoins history. Surprisingly enough it had traffic crashes not one or two times but around 13 times.
Bitcoin has seen much more volatility in the past. Did you previously know that Bitcoin lost 87 percent of its value in three days from April 10, 2013, to April 12, 2013? Besides facing this drastic crash in Bitcoin’s price, it still increased in value nearly 100 times, or 10,000%, from the beginning of 2013 (~$10) to the end of November 2013 (~$1,000).
To get more exposure, here are some of Bitcoin’s biggest crashes and the events that helped cause them.
Bitcoin Crash History: Bitcoin’s 5 Biggest Crashes
- June to November 2011, -93%
Bitcoin went through its first major crash in 2011, with a price fall from $29 down to $2. This much downfall never was experienced with a dramatic crash (93%).
The factors working in the background include the incident of hacking a dominant centralized exchange named Mt. Gox.
A hacker was successful to access Mt. Gox user accounts and crash Bitcoins price falsely to $0.01.Although it was not a real crash. But it brought a big shock to Bitcoin and the broader ecosystem in its early days. And it was not the end of such hacking cases as you’ll see shortly. If you get more information than visit bitcoinprime.
- August 2012, -56.7%
Bitcoin had its second big crash a year later in summer 2012. It was when Bitcoin Savings & Trust, a Ponzi scheme promising large weekly payouts to investors suddenly, stopped its payouts. Bitcoin Savings & Trust’s operator, Trendon Shavers, eventually went to jail for his activities.
- April 2013, -87%
After the second big crash over a few days in April 2013 a noticeable ruse in Bitcoins price was seen. Yet another, not the last to be mentioned case of mismanagement at Mt. Gox appeared.
Having seen a tremendous 4-month rally, BTC finally started to cool off, with the price dropping significantly. Bitcoins price dropped on April 10th, 2013, up to 52% in 6 hours. This condition was aggravated when Mt.Gox failed to handle the increased amount of trading because of the price drop at a fast pace. As Mt. Gox was dealing in over 70% of Bitcoin transactions at its peak, It aired more uncertainty and selling pressure in the community.
- December 2013 – January 2015, -84.6%
It is another landmark in Bitcoins price history when In November 2013, Bitcoin broke its previous all-time high of $260. Just within a short period of a month, Bitcoin’s price went up nearly 5x or 500%, peaking at around $1,150 in early December.
Having this awesome rally, Bitcoin began to correct in price. Again, this situation became, even more, worse due to problems at Mt. Gox. On February 10, 2014, Mt. Gox held all withdrawals before filing for bankruptcy on February 28, 2014. They announced that they had lost 850,000 Bitcoin, worth about $450 million at the time.
- December 2017 – December 2018, -83.8%
In the year 2017 Bitcoin saw a massive rally from $1,000 at the beginning of the year to $20,000 in December. However, Bitcoin’s price quickly began to slide and would do so for an entire year before beginning to stabilize.
In this phase, we find no Mt. Gox type event that might contribute to crashing the market. So at this time, the market was likely overdue for a correction considering how frenzied the market was by the end of 2017.
Conclusion
You can discover that Bitcoin crash history is full of sudden rise and fall in its price including extremely drastic ones. So it would be justified to say that we can expect to see more in the future as this asset continues to mature. One of the most mature and valuable markets in the world like The US stock market also came across volatility in its early days. Despite traveling through all its ups and downs, the US stock market is still here. In the same way, throughout its more than 10-year history, Bitcoin has yet to be wiped out, despite the hundreds of times that it’s been called “dead”.This is the coin that has indeed suffered some serious crashes throughout its existence.
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