What We Can Learn From The 5 Biggest Bitcoin Crashes

Bitcoin has faced tough times in the past, but it always bounced back even stronger. By studying its previous big price drops, we can spot some common trends.

Let’s examine these trends to help ease our worries about the current drop. To begin, let’s explore the five major price drops in Bitcoin’s history.

June 2011

Following the Mt.Gox hack, Bitcoin experienced a drop of 93% in just four months. The price fell from $32 to $2.5.

Some eyewitnesses claim that on the day of the hack, Bitcoin’s price was as low as $0.01.

December 2013

Two years later, people who were either really into Bitcoin or had just kind of forgotten about it got a pleasant surprise: the price reached $1000. However, within a month it crashed by 50% due to the first ban in China.

For nearly another year, Bitcoin gradually declined to the bottom at $200, which was an 80% decrease.

December 2017

In 2017, Bitcoin came really close to the $20,000 target, missing it by just $500. But then it went through a 83% drop, settling at $3,200 a year later.

We all wish we had bought it back then.

March 2020

Around mid-2019, Bitcoin began to bounce back and was trading in the range of $7,000 to $11,000, but in March 2020… Well, you know what happened.

Bitcoin collapsed by 50% following the stock market.

November 2021

The recent bull cycle has been fascinating: Elon Musk, Shiba Inu & NFTs worth millions.

We can be sure that it ended at $68,000, but we’re uncertain about where the lowest point will be. If we consider $16,000 as the bottom, the drop stands at 75%.

Key Takeaways:

• The decline from the market peak to the bottom lasts approximately a year. If we project this pattern to the last decline, $16,000 seems to be the lowest point — you can verify this on the previous slide. However, history doesn’t always repeat itself.
• It takes nearly two years to reach the previous market peak from the time the bottom is reached.
• The drops in 2017 and 2021 had no specific triggering events.
• It’s tough to watch your account lose over 50% for several years and even the most devoted believers may find it hard to endure.

• Lastly, if you zoom out and look at the bigger picture over time, most of these events become hard to spot.