Bitcoin’s price crash throughout its history is nothing new to cryptocurrency space and its ability to pick itself up after a downfall is remarkable. The virtual currency has declined significantly in the past before showing a nice comeback. That being the case, will its most recent decline from $20,000 to about $3,000 be any different? One can only hope and wait.
The most popular cryptocurrency has died 345 times due to the sentiments it has faced from reputable websites on the net. Many have argued that its price volatility, anonymity, and its use to facilitate crime should be enough to drag it down the gutter. However, Bitcoin has done otherwise. Here’s a review of the top Bitcoin crashes of all time.
Bitcoin’s Price Declines 98 Percent in 2011
Bitcoin flash crash as it is called, occurred in June 2011 when Bitcoin was trading around $32. What triggered the crash? Several user accounts were hacked on MTGox, the oldest cryptocurrency exchange. The database containing their passwords were also leaked and given that some users were using a similar password on Tradehill, another crypto exchange, this posed security issues.
On June 19 of the same year, the hacker also created large sell orders on MTGox which made the virtual asset to decline from $17.50 to $0.01. As such, this brought about distrust among users and led to the great fall of the asset. Having recovered the same day in June, Bitcoin declined further by 98 percent and traded around $2 in November 2011.
Bitcoin Devalues 56 Percent in 2012
In 2012, Bitcoin declined from $15.25 to $7.50 within three days. The 51 percent decline in value was attributed to the fold of Bitcoin Savings & Trust, a Ponzi scheme. Trendon Shavers, the operator of the platform was sentenced to 18 months in prison. New York prosecutors also revealed that Shavers had obtained 146,000 Bitcoin through the scheme.
Bitcoin Declines 73 Percent in 2013
Bitcoin garnered more interest in 2013 despite the setbacks it faced in the 2011 and 2012. By March 2013, its price was double that of 2012’s high and it also hit $260 on April 10. Nonetheless, more problems arose from the side of MTGox and more hack attempts were made. The exchange suffered a lot of DDOS attacks and also struggled to handle the high trading volume on its platform.
Bitcoin Devalues Over 90 Percent Since December 2017
December 2017 is when Bitcoin hit its all-time high of $20,000 and saw a market capitalization of about $326 billion. Since that time till now, it has suffered over an 80 percent decrement in price considering the $4,049 price it is currently trading at. That aside, there are expectations that the past has a way of repeating itself and many analysts believe that it will be the case this time around.