5 biggest crashes of the crypto market in its history. How do they differ from the current correction?

We clarified the latest data: today Bitcoin is trading just above 37 thousand dollars. Here is a four-hour chart of the movement of the cryptocurrency, which, among other things, shows its new local bottom in the $32,917 zone. BTC has not fallen this low since the summer of 2021.

While BTC dropped over 50 percent from its all-time high from November 2021 during this correction, it is still not the worst crash in the digital asset’s history. Below is a list of the most notable market declines since its inception.

Bitcoin crash June 19, 2011

This is the first and biggest crisis in the history of the crypto industry. In 2011, there was no CoinMarketCap or Coinbase, and all of the biggest bitcoin trades were on a long-closed, hacked, and bankrupt exchange called Mt. gox. In the first half of the year, the price of BTC rose from $2 to $32, and then there was a correction to $17.50.

This was before the start of the disaster – the hacking of Mt. Gox, which allowed hackers to collapse the price of cryptocurrency to a few cents. Thus, in just a day, its value “sank” by 99.9 percent. This was not a “natural” fall in the asset, and the price of BTC rose rapidly in a short time. However, this correction remains among the negative industry records.

The fall of cryptocurrencies in December 2013

Now on the Bitcoin chart, this time period looks like a small bump on a straight line, but at the time, the 2013 correction was a noticeable disaster for the market. Recall that on December 3, BTC peaked at $1,151, while a month ago, the cryptocurrency was trading at $200.

At the same time, the first major ban from China was announced: the local government issued a decree according to which Chinese banks could not deal with cryptocurrencies. This led to a protracted correction, and by January 2015, the price of Bitcoin had dropped below $200.

Bitcoin crash in December 2017

This month, the first signs of the onset of “crypto winter” appeared – a long period of market decline and low activity of traders. By the end of 2017, Bitcoin managed to rise to a high of around $19,497, according to Decrypt sources. Six days after reaching the peak, the value of the cryptocurrency fell by almost 29 percent to $13,800.

After some time, things only got worse: by February 2018, the coin was already trading below $7,000. She spent the next nine months in a horizontal channel ranging from $6,000 to $10,000. Finally, in December, Bitcoin “failed” from the channel to $3,300, where it spent several more months.

The collapse of the cryptocurrency market on March 12, 2020

This is the last major market crash before the start of the current bull run. It occurred against the backdrop of panic around the world, when the danger of the spread of the COVID-19 virus was officially recognized as a pandemic. In just one day, Bitcoin has fallen by 37 percent, from $7,911 to $4,970.

Fortunately, panic has been replaced by the understanding that the world economy needs strong support from governments. The United States began printing the dollar on an unprecedented scale. The flow of “new money” quickly inflated the stock market, and the crypt went up with it.

The fall of Bitcoin in May 2021

Almost 8 months ago, the first major correction of the bull run occurred – the market crash reached its climax by May 19, when Bitcoin fell to $30,000, although before that the main cryptocurrency reached a new all-time high of around $64,000.

This time, several factors contributed to the correction. The first is Tesla’s refusal to accept BTC as payment for its electric cars. The second is a complete ban on Bitcoin mining in China. By the way, just after that, China ceased to be considered the main mining center of the world.

In conclusion, it is worth adding that on a large scale, each of these collapses led to a new wave of Bitcoin growth. Globally, the cryptocurrency is still growing, especially if you compare its current price – even after a correction – with the price that was just a few years ago.


Мы считаем, что после перечня этих событий становится очевидно, что Биткоин и другие криптовалют умеют существенно проседать, однако после этого также могут как следует восстанавливаться. Поэтому даже в нынешних условиях обвала не стоит ставить крест на цифровых активах. Всё же их потенциал слишком велик для того, чтобы просесть до нуля и стать частью истории.