7 of the biggest bitcoin crashes in history

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From the very beginning, Bitcoin’s history has been one of white-handed investors hanging on for their entire lives as they scale digital currency from pennies to tens of thousands of dollars per token. Fortunes have been made, of course, but they have also often been lost almost overnight. More than a decade after emerging from the shadow of the internet, Bitcoin still has not surpassed its trend of stratospheric highs and underground troughs. Here’s a look at the biggest crashes in Bitcoin bubble repeat history.

See: Why Some Money Experts Believe In Bitcoin And Others DontBitcoin Investments: 10 Big Companies That Accept Bitcoin

Why the decade-long roller coaster ride?

When Bitcoin first gained popularity, people put money in primarily based on sentiment, not genuine understanding of things like blockchain technology. Their optimism about entering the ground floor of a potentially seismic game changer fueled some super-inflated bubbles as no one wanted to be left out once the bandwagon started rolling.

Each time, brutal reality checks burst these bubbles. Emerging technology has been the victim of criminal hacks, trade closures, scams and Ponzi schemes, as well as inconsistent and often arbitrary government regulations. Each time, herds of investors who were already nervous about such an unknown amount fled to safer and more familiar pastures.

Read more: 10 Best Cryptocurrencies To Invest In For 2021 Money Investments: How Cryptocurrency Works and Is It Safe?

A look at Bitcoins lowest lows

The following is a timeline of the worst percentage crashes in Bitcoin history. Keep in mind that many major fixes of 20%, 30%, 40% and more did not make the list.

June 2011: -99% In 2011, Bitcoin hit the big time, going from $ 2 to over $ 32, hitting par with an ounce of silver. Then the bottom fell. On June 19, Mt. Gox, the world’s largest Bitcoin exchange, has by far admitted that criminals have hacked hundreds of accounts and stolen millions of dollars in Bitcoin. In just one day, the value of a Bitcoin has dropped to a dime.

August 2012: -56% In August 2012, the public learned that a classic Ponzi scheme updated for the digital age had deceived crypto investors for months. Promising incredible returns of 7% weekly interest, the culprit later indicted, convicted, fined and jailed had stolen 700,000 Bitcoins by deception.

April 2013: -83% In April 2013, Bitcoin fell victim to its own success as investors seized on the exciting new opportunity that was buzzing through mainstream media. The trade was so intense that Mt. Gox couldn’t handle the volume, and when it crashed, hackers attacked the vulnerability. This forced Mt. Gox in an unprecedented blackout, dropping prices from nearly $ 260 to $ 50.

December 2013: -50% When China banned Bitcoin in late 2013, it lost 50% of its value overnight, according to the Guardian. China’s relationship with cryptocurrency remains turbulent, and the country continues to add new restrictions today.

December 2017-December 2018: -84% 2017 was a pivotal year for Bitcoin, which broke all of its own records and peaked at nearly $ 20,000. Then, on December 27, it all fell apart as investors reaped the gains from what was an obvious bubble and knocked the price below $ 12,000. Cryptocurrency is said to remain in the doldrums throughout 2018, as major hacks in Korea and Japan as well as rumors that those countries were considering banning Bitcoin sent already cautious investors looking for exits.

March 2020: -50% The pandemic did not spare Bitcoin, and when the markets collapsed in March 2020, the Bitcoin market collapsed even harder. Bitcoin lost half of its value in two days. In one month, it went from over $ 10,000 in February to less than $ 4,000 in March.

May 2021: -53% In April, Bitcoin made headlines among the investor world when it exceeded $ 64,000 for a single coin. Then, in a flash, a trillion dollar value was wiped out of the global crypto market in a single week. First, Elon Musk reneged on his promise to accept Bitcoin as a payment method for Tesla cars. Then China announced another crackdown on crypto. Finally, the public learned about the environmental impact of Bitcoin mining, and crypto investors found themselves in a familiar position at the mercy of forces beyond their control.

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Last updated: June 30, 2021

This article originally appeared on GOBankingRates.com: 7 of the biggest bitcoin crashes in history

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