A brief history of Bitcoin crashes and bearish markets: 2009–2022

Bitcoin (BTC) suffered one of its most brutal crashes ever in 2022, with the BTC price falling below $20,000 in June after hitting $68,000 in 2021.

June 2022 was the worst month for Bitcoin since September 2011, with monthly losses reaching 40%. The cryptocurrency also recorded its heaviest quarterly losses in 11 years.

That said, current market sell-offs aren’t crashing Bitcoin and markets special to 2022 aren’t making them bearish. In fact, Bitcoin has had its fair share of crypto winters since the first Bitcoin block, or genesis block, was mined in January 2009. .

Zooming out the Bitcoin price chart, Cointelegraph captured five of the most notable price drops in groundbreaking cryptocurrency history.

Bear market No. 1: Bitcoin fell from $32 to $0.01 in 2011

Time to retest previous high: 20 months (June 2011–February 2013)

bitcoin price free The first big psychological mark of $1.00 in late April 2011 start His first rally reached $32 on June 8, 2011. The joy did not last long, however, as Bitcoin dropped to just $0.01 a few days later.

The sharp sell-off is largely due to the now-defunct Mt. Linked to security issues in Gox. The exchange saw 850,000 BTC stolen due to a security breach on its platform, raising major concerns about the security of Bitcoin stored on exchanges.

Bitcoin’s sudden crash in June 2011 has become a big part of Bitcoin history, with BTC losing around 99% of its value in a matter of days. The event started long before the BTC price surged to the previous high of $32 and climbed to new heights only in February 2013.

Pre-2013 Bitcoin price is hard to follow compared to newer charts. Popular price tracking services and sites like CoinGecko or CoinMarketCap do not track Bitcoin prices before April 2013.

“Bitcoin was in its infancy before 2013 and there weren’t many places trading Bitcoin at that time,” CoinGecko COO Bobby Ong told Cointelegraph. He added that CoinGecko did not receive a lot of requests for pre-2013 data, so the priority of the platform was low.

Bear market No. 2: Bitcoin tanks dropped from $1,000 to under $200 in 2015

Time to retest previous high: 37 months (November 2013–January 2017)

Bitcoin price according to BTC price data collected by Cointelegraph reached It continued to hit $100 in mid-April 2013 and then briefly $1,000 in November 2013.

Bitcoin entered a major bear market shortly after breaking $1,000 for the first time in history, and a month later, the BTC price dropped below $700. The price drop came as China’s central bank began cracking down on Bitcoin in late 2013, forbidding local financial institutions from executing BTC transactions.

The cryptocurrency continued to decline for the next two years, dropping to around $360 in April 2014 and then as low as $170 in January 2015.

Bitcoin price chart April 2013–January 2017. Source: CoinGecko

The long cryptocurrency winter of 2014 saw the hacked Mt.

Some major financial authorities have also expressed concerns about Bitcoin, with the U.S. Commodity Futures Trading Commission claiming it has power over “Bitcoin price manipulation” in late 2014.

The general sentiment around Bitcoin was mostly negative until August 2015, when the trend started a long-term reversal. Amid the strong bullish market, Bitcoin finally returned to the $1,000 price mark in January 2017. This was the highest price recovery period of all time in Bitcoin history.

Bear market No. 3: Bitcoin drops below $3,200 after hitting $20,000 in December 2017

Time to retest previous high: 36 months (December 2017 – December 2020)

After rising to $1,000 in January 2017, Bitcoin continued to climb as high as $20,000 by the end of that year.

However, similar to Bitcoin’s previous historic peak of $1,000, the $20,000 victory was short-lived as Bitcoin then plummeted and lost more than 60% of its value in a matter of months.

As the Bitcoin market continued to shrink, 2018 quickly became known as the “crypto winter,” with BTC dropping to around $3,200 in December 2018.

The crypto winter started with security issues at Coincheck, another Japanese cryptocurrency exchange. In January 2018, Coincheck suffered a massive hack that resulted in a loss of approximately $530 million in the NEM (XEM) cryptocurrency.

The bear market escalated further as tech giants like Facebook and Google banned ads for initial coin offerings and coin sale ads on their platforms in March and June 2018, respectively.

Global crypto regulatory efforts have also contributed to the bear market, while the US Securities and Exchange Commission has rejected applications for funds traded on the BTC exchange.

Bitcoin price chart December 2017–December 2020. Source: CoinGecko

Bear Market #4: BTC Drops From $63,000 To $29,000 In 2021

Time to retest previous high: six months (April 2021–October 2021)

Bearish sentiment dominated the crypto market until 2020, when Bitcoin not only returned to $20,000 but entered a massive bull run in April 2021, hitting over $63,000.

Despite 2021 being one of the biggest years for Bitcoin and the cryptocurrency surpassing the $1 trillion market cap, Bitcoin also suffered a slight disadvantage.

Shortly after breaking all-time highs in mid-April, Bitcoin pulled back slightly and its price eventually dropped as low as $29,000 in three months.

The 2021 mini bear market came amid a growing media narrative suggesting that Bitcoin mining has an environmental, social and corporate governance (ESG) issue.

The FUD regarding the global ESG around Bitcoin was exacerbated when Elon Musk’s electric car firm Tesla dropped Bitcoin as payment in May, and CEO ESG expressed his concerns. Just three months later, Musk admitted that about 50% of Bitcoin mining runs on renewable energy.

The bear market did not last long even as China began to put massive pressure on local mining farms. The uptrend returned at the end of July, and Bitcoin finally rallied to its still unbroken all-time high of $68,000 posted in November 2021.

Bear market No. 5: Bitcoin dropped from $68,000 to below $20,000 in 2022

Time to retest previous high: to be determined

Bitcoin failed to exceed $70,000 and started to decline in late 2021. The cryptocurrency has slipped into a bear market since November last year, recording one of its biggest historical crashes in 2022.

In June, the cryptocurrency dropped below $20,000 for the first time since 2020, creating extreme fear in the market.

The ongoing bear market is largely attributed to the crisis of algorithmic stablecoins (i.e. TerraUSD Classic (USTC) stablecoins) designed to support a stable 1:1 peg with the US dollar through blockchain algorithms rather than equivalent cash reserves.

USTC, once a major algorithmic stablecoin, lost the dollar in May. The unbundling of USTC triggered a major panic over the broader crypto markets as it managed to become the third largest stablecoin in existence before the stablecoin collapsed.

Terra’s collapse had a domino effect on the rest of the crypto market due to massive liquidations and uncertainty fueling a crisis in cryptocurrency lending. A number of global crypto lenders such as Celsius have had to suspend their withdrawals due to their inability to maintain liquidity in the brutal market conditions.

Bitcoin has historically seen its price trade below previous highs for over three years. The previous peak of $68,000 occurred just seven months ago, and it remains to be seen whether and when Bitcoin will return to new highs.