The beginning of cryptocurrencies was long ago, in 2009. As we know, a lot of things have changed since then. However, one thing remained constant - the crypto market was and still is very volatile. Of course, Bitcoin is the best indicator of the cryptocurrency market, since it has the largest market cap.
Bitcoin has experienced some significant ups and downs for the last 13 years. There were times when it crashed by more than 40%. Despite that, it has always come back stronger.
The latest Bitcoin crash was in June 2022. After reaching an all-time-high of $68, 000 in 2021, the price of Bitcoin dropped to $20,000, and is currently trading at 20 605,60 USD. This is the worst loss for the cryptocurrency in the last 11 years. However, there have been some other major market crashes during that period of time.
The first market crash (2011-2012)
The first big cryptocurrency market crash happened long ago, when most of the people weren’t even aware that digital currencies exist. Back in 2011, the price of Bitcoin had reached 32 dollars, and fell to about $2, in only a few months. It dropped with more than 90% of its value.
As we know, for the last ten years, the perspective of Bitcoin and digital currencies has changed a lot. It started as a strange experiment and turned out to be an inflation hedge, and even the foundation of a brand new financial system. In 2013 Bitcoin broke through its previous all-time-high, and never dropped below it again.
The second market crash (2014-2016)
As we already said, Bitcoin reached its new ATH in 2013. In April, 2013 it reached a price of $100, and in November that same year it was traded for $1000.
However, only a month later, in December, the Chinese government forbade institutions from carrying out Bitcoin transactions, for they were considered useless. As a result, the price of Bitcoin dropped to about $700 in just one month, in the biggest exchange back then - Bitcoin China.
Of course, this exchange was not the only one to blame for the crypto winter in 2014. The Japanese exchange filed for bankruptcy in Tokyo and the US.
During this crash, the price of Bitcoin fell from $1,135 on December 4, 2013, to $175 on January 14, 2015.
As you might guess, investors started to lose faith in Bitcoin during that time, but things started to turn around in August 2015. However, it took almost 2 years for Bitcoin to bounce back to a price of $1,000.
Crypto winter 2018 - 2020
One of the biggest downfalls in the history of Bitcoin happened at the end of 2018, when it reached from almost $20,000 in December 2017, to $3,185 in December 2018.
During that time, the biggest Japanese crypto exchange was compromised. At the same time, due to the volatile and uncontrollable nature of cryptocurrencies, the US Securities and Exchange Commission rejected apps for bitcoin exchange-traded funds.
Despite everything, Bitcoin bounced back again, and in April 2021 it reached $63,000.
Nowadays (2022)
During the last few months, Bitcoin is going through a dramatic crash. It dropped below $20,000, after an ATH of $68,000.
As a result, investors started selling off their holdings, leading to an increased uncertainty of the cryptocurrency market.
Unfortunately, the bear crypto market is hard to expect or fight. However, they manage to contribute to the development of bitcoin as a form of money.
It is important to remember, that this for sure is not the end of cryptocurrencies. This is the beginning of various upgrades and development of crypto!