Bitcoin (BTC) suffered one of its most brutal crashes since its inception in 2022, with BTC falling below $ 20,000 in June after peaking at $ 68,000 in 2021.
June 2022 has been the worst month for Bitcoin since September 2011, with its monthly loss rising to 40%. The cryptocurrency also returned its heaviest quarterly loss in 11 years.
However, current market sales do not cause Bitcoin to collapse and the market will only carry on until 2022. In fact, Bitcoin has survived a fair share of cryptocurrencies since the first Bitcoin block, or emergence block, was developed back in January 2009.
As we expand the Bitcoin price table, Cointelegraph has recorded five of the most notable price reductions in the history of the cryptocurrency.
Bear market no. 1: Bitcoin crash from $ 32 to $ 0.01 in 2011
Time to retest previous maximum: 20 months (June 2011 – February 2013)
Bitcoin price braut its first major psychological goal of $ 1.00 back in late April 2011 to start Its first rally to reach $ 32 on June 8, 2011. But the joy did not last long, as Bitcoin subsequently collapsed in value to just $ 0.01 in a few days.
High sales were largely due to security issues in Mt. Gox, now gone, is a Japanese cryptocurrency exchange that traded in the majority of Bitcoin at the time. The exchange saw 850,000 BTC stolen due to a security breach at its site, which raises serious concerns about the security of Bitcoin stored on exchanges.
As BTC lost about 99% of its value in a matter of days, the collapse of Bitcoin in June 2011 became a big part of Bitcoin’s history. The event opened a long time before the BTC price reached its previous high of $ 32 and climbed in new heights only in February 2013.
Haha nice #bitcoin crash at 0.01 USD / BTC. http://t.co/jNx8rAr
– Who knows? ₿⚡️ (@who_knows) June 19, 2011
It is difficult to track the price of Bitcoin for 2013 compared to recent charts. Popular price tracking services and sites like CoinGecko or CoinMarketCap do not track the price of Bitcoin for April 2013.
“Bitcoin was very early in 2013 and there were not that many places trading Bitcoin then,” Bobby Ong, CoinGecko’s chief operating officer, told Cointelegraph. He added that CoinGecko had not received many requests for data before 2013, so that is a low priority for the forum.
Bear market no. 2: Bitcoin tanks from $ 1,000 to under $ 200 in 2015
Time to test previous maximum again: 37 months (November 2013 – January 2017)
According to BTC price information collected by Cointelegraph, Bitcoin prices Grace $ 100 in mid-April 2013 and then continued to rise, briefly reaching $ 1,000 in November 2013.
Bitcoin entered a huge bear market shortly after breaking $ 1,000 for the first time in history, as BTC prices fell below $ 700 a month later. The fall in prices came when the Chinese central bank began fighting Bitcoin in late 2013, banning local financial institutions from handling BTC trades.
The cryptocurrency continued to depreciate over the next two years, bottoming out at around $ 360 in April 2014 and then declining further to a low of $ 170 in January 2015.
The long cryptocurrency winter of 2014 was related to the hacked Mt. Gox cryptocurrency, which stopped all withdrawals on Bitcoin in early February 2014. Then the forum stopped all trading and eventually filed for bankruptcy in Tokyo and the United States.
Some major financial authorities have also raised concerns about Bitcoin, as the US Commodities Futures Commerce Committee claimed to have control over “Bitcoin pricing” in late 2014.
The general attitude around Bitcoin was mostly negative until August 2015, when the trend began with a long-term reversal. Within the strong bullish market, Bitcoin finally returned to the $ 1,000 price target in January 2017. This was the longest recovery period of all time high prices in the history of Bitcoin.
Bear market no. 3: Bitcoin drops below $ 3,200 after reaching $ 20,000 in December 2017
Time to retest previous maximum: 36 months (December 2017 – December 2020)
After recovering to $ 1,000 in January 2017, Bitcoin continued to rise to up to $ 20,000 by the end of that year.
However, similar to Bitcoin’s previous historical high of $ 1,000, the $ 20,000 short-term gain was short-lived, with Bitcoin subsequently declining and losing more than 60% of its value in a matter of months.
The year 2018 was quickly referred to as an “encryption winter” as the Bitcoin market continued to shrink, with the BTC bottoming at around $ 3,200 in December 2018.
The winter of cryptocurrencies began with security problems at Coincheck, another Japanese cryptocurrency exchange. In January 2018, Coincheck suffered a huge burglary that resulted in the loss of approximately $ 530 million of the NEM (XEM) cryptocurrency.
The bear market expanded even further as tech giants such as Facebook and Google banned initial currency offerings and token sales ads on their systems in March and June 2018, respectively.
International cryptocurrency regulations also contributed to the bear market, as the US Securities and Exchange Commission rejected applications for BTC exchange funds.
Bear market no. 4: BTC drops from $ 63,000 to $ 29,000 by 2021
Time to test previous maximum again: six months (April 2021 – October 2021)
Bearish sentiment prevailed in the cryptocurrency market until 2020, when Bitcoin not only returned to $ 20,000 but went into a huge bull run, exceeding $ 63,000 in April 2021.
Although 2021 was one of the biggest years for Bitcoin, with the cryptocurrency exceeding $ 1 trillion in market value, Bitcoin also suffered a minor setback.
Shortly after reaching new historic highs in mid-April, Bitcoin declined slightly, eventually dropping to $ 29,000 in three months.
The 2021 bear market came amid growing media reports suggesting that Bitcoin mining is facing problems related to environmental, social and corporate governance (ESG).
The global ESG-related FUD around Bitcoin had been further intensified with Elon Musk electric car company Tesla dropping Bitcoin as payment in May, with the CEO citing ESG concerns. Just three months later, Musk acknowledged that about 50% of Bitcoin mining was powered by renewable energy.
FUD cycle image.twitter.com/OC8kGXAUSd
– Lina Seiche (@LinaSeiche) June 20, 2021
The bear market did not last long, despite the fact that China had launched a major operation against local miners. The steady trend returned at the end of July, when Bitcoin finally reached its still unbroken historical high, $ 68,000, set in November 2021.
Bear market no. 5: Bitcoin drops sharply from $ 68,000 to under $ 20,000 by 2022
Time to try the previous maximum again: to be decided
Bitcoin failed to break $ 70,000 and began to fall in late 2021. The cryptocurrency has slipped into the bear market since November last year, recording one of its biggest historic crashes in 2022.
In June, the cryptocurrency fell below $ 20,000 for the first time since 2020, fueling fears in the market.
The continuing bear market is largely due to the crisis of the stablecoins algorithm – ie. TerraUSD Classic (USTC) stablecoin – which are designed to support a stable 1: 1 connection to the US dollar through blockchain algorithms rather than the corresponding cash reserves.
The USTC, once a major algorithmic stablecoin, lost a dollar connection in May. The disconnection of the USTC caused a huge panic over broader cryptocurrencies as stablecoin had become the third largest stablecoin in existence before its collapse.
Terra’s collapse has had a domino effect on the rest of the cryptocurrency market due to massive bankruptcies and uncertainty, which has fueled a crisis in cryptocurrency lending. A number of international cryptocurrency lenders such as Celsius had to postpone withdrawals due to their inability to maintain liquidity in the face of harsh market conditions.
Bitcoin has historically seen its price trading below its previous high for more than three years. The previous peak of $ 68,000 took place just seven months ago, and it remains to be seen if and when Bitcoin would return to new heights.
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