With the inception of the bitcoin whitepaper in 2009, the leading cryptocurrency by market capitalization has undergone a series of ups and down which lead to a major crash that resulted to wipe out of millions and billions of dollars from market circulation, history is an important part of any financial market and here's a look at some important market crash bitcoin has witnessed in the previous years.
Mt. Gox hack June 2011
Fear uncertainty and doubt (FUD) did play its cause in 2011, investors did panic sold their bitcoin hold when a YouTuber shared with his followers a video about the bitcoin crash a five-minute plus video about Mt. Gox exchange hack.
Mt. Gox was one of the earliest crypto exchanges which did account for over 70% of Bitcoin transactions, with such an attack, which made away with about 750,000 BTC traders sold their holdings which made bitcoin trade below $2 from a peak of $17.
China FUD December 2013
Bitcoin plummeted from its peak of $1,200 to $600 losing 50% of its value, China has always been a leading factor influencing Bitcoin adoption since 2013, China's central bank issued a warning against the use of bitcoin as a legal tender currency in its country this and other factors, from today's Bitcoin believer Microstrategy CEO Micheal Saylor, did incite fear on users with the below tweet who did sell in panic.
Crypto winter 2017
Bitcoin price made an all-time high of 20k which was its highest price mark before losing a significant value 12 days later, to a low of $12,840.
Interestingly during this fall bitcoin wasn't the only major currency that suffered huge losses in value as Ethereum did fall in price leading to what was known as crypto winter.
Pandemic shock March 2020
The crypto market did witness its best rally and push toward the end of the pandemic a lot of investors did venture into the crypto space which made Bitcoin and other altcoins witness an all-time high in price at the end of the year bitcoin recorded an all-time high of 29k.
Although at the beginning of the pandemic a market crash of over 57% was recorded in the price of bitcoin which traded at $3,867 from $10k, other major stock markets assets did crash as well during the pandemic.
Terra meltdown May 2022
The likes of Three Arrow Capital, Celsius which got bankrupt and couldn't hold up with market liquidity demands from investors did contribute to the bitcoin crash in 2022, terra stable coin UST lost its dollar peg which affected the price of LUNA that loss 99% of its value made investors to panic sell in fear of Bitcoin era coming to an end.
This led to bitcoin losing 37% of its value from $32,000 to below $18, 000.
Are we yet at bitcoin trading bottom zone or there is more price dump to be expected in 2022, there are several speculations we might see a price dive below $10k before the market will start making recovery?