Skip to main content

The Worst Bitcoin Crashes in History – Where Does the FTX Crash Compare?



 Why do we keep seeing Bitcoin crashes?

Bitcoin is a volatile asset. Since its existence, we have repeatedly seen strong price fluctuations within short periods of time. These price fluctuations can lead to the Bitcoin increasing in value massively within a short period of time or even crashing quickly. 

This high volatility makes Bitcoin difficult to calculate in the short term. The advantage of bitcoin and other cryptocurrencies is that they have increased in value extremely strongly over the past few years. They have brought in more returns than any other classic financial asset. 


1. Bitcoin Crash from $32 to $0.01 in 2011

The first massive Bitcoin crash happened in 2011, two years after the creation of the first cryptocurrency . In April of that year, Bitcoin broke through the $1 mark for the first time, which had an extremely positive psychological effect. As a result, BTC started to rally to $32. 

Security gaps and hacks at what was then the largest crypto exchange, Mt. Gox, triggered the largest percentage Bitcoin crash in history on June 8, 2011. Bitcoin fell back to $0.01. A total of 850,000 BTC were allegedly stolen. The Bitcoin price took another 20 months to reach the original price again.


2. Bitcoin bear market in late 2013: $1,000 to $200

In 2013, Bitcoin was able to break two marks: $100 in mid-April of that year and even $1,000 for a short time in November. However, a massive bear market began at the end of 2013 due to a ban on Bitcoin transactions by the Chinese central bank.

After a brief dip to $370, the bear market bottom in 2015 was just $200. It was not until January 2017, 37 months after the all-time high, that the Bitcoin price was able to reach the $1,000 mark again. 


3. Second major bear market of 2018: From $20,000 to $3,200

Four years later we saw a similar development at a higher price level. The Bitcoin price started a massive rally in 2017. At the end of 2017, the price could even rise to a value of 20,000 dollars for a very short time. 

Triggered by security issues at Coincheck, a Japanese crypto exchange, and the subsequent loss of $530 million in the form of NEM (XEM), crypto winter began in 2018. The price fell to a value of $3,200 at the end of 2018. Bitcoin only reached its previous all-time high 36 months later.


4. Bitcoin crash from $63,000 to $29,000 in spring 2021

At the end of 2020 and beginning of 2021, the Bitcoin price was able to experience a massive increase again. In April 2021, it saw a surge above $63,000. Many investors were already hoping that the $100,000 mark would soon be cracked. 


The crash was triggered by an extensive mining ban in China and negative press about the allegedly massively environmentally harmful production of bitcoins. The crash came in the middle of a bull market, allowing the price to recover in just 6 months, eventually rising to $68,000. 


(5. Bitcoin Bear Market 2022: The current bear market is still in full swing and it is yet to be determined where the bottom of this bear market might be.)


Where can the FTX crash be classified?

With a loss of 25 to 30 percent, the FTX crash was only a very small event in the cosmos of Bitcoin history . Also, since it happened in a bear market, it could just be part of a larger bear market a few months from now. Therefore, panic and frustration for investors is hardly appropriate in the medium and long term. 

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FireFaucet - An earning site that pays better for some than Cointiply
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin
Post a Comment
Read more

MSP Recovery and Tokenology aim to optimize healthcare with the help of Polygon

  MSP Recovery LLC, a Miami, US-based healthcare provider with an estimated enterprise value of $32.6 billion, is partnering with Web3 company Tokenology to jointly launch a new blockchain platform called Lifechain. Lifechain wants to leverage the verifiable and transparent nature of blockchain technology to aggregate medical care claims, medical expense reports and patient data and streamline their processing. For this purpose, MSP Recovery launched its own LifeWallet in January, which already has 1 million users. In addition to the wallet and blockchain platform, an associated crypto token called LifeCoin is also used. The press release explains that the primary purpose of the system is to enable secondary healthcare providers to more effectively bill health insurance companies for their costs. “The number of medical claims tokenized going forward will surpass $50 million per day by 2024. For this we need scalability, security and sustainability, which we have only found with Polygon
Post a Comment
Read more

Phishing attack on popular crypto sites tries to empty wallets

  Several major crypto sites such as Etherscan, CoinGecko, DeFi Pulse, and others report malicious pop-ups scammers use to try to trick users into connecting their MetaMask wallets. The phishing attack came from a domain displaying the Bored Ape Yacht Club (BAYC) logo. "We are investigating the root cause of this attack to fix the threat as soon as possible," CoinGecko founder Bobby Ong tweeted. The phishing attack appears to have been triggered by a malicious ad script from Coinzilla, a crypto ad network, according to CoinGecko. Etherscan also advises its users not to confirm any transactions that may appear on the website. The attackers attempted to use the hype around the “bored monkeys” non-fungible tokens (NFT) to gain access to the cryptocurrencies of unsuspecting website visitors. Although the websites affected by the scam attempt have reacted in the last few hours and deactivated the advertising pop-up, it is still recommended not to connect your MetaMask wallet to ne
Post a Comment
Read more