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Despite the recovery with a rise of 9.4% this Tuesday, the price of BTC remains on a downward trajectory. In fact, the cryptocurrency is already losing almost 50% from the last all-time high recorded in November.
Because of this, many analysts claim that the market is already in a bear market, that is, in a downturn. But in historical terms, the current move is still far below other drops in cryptocurrency history.
Five Biggest Drops in BTC’s History
Between 2011 and 2021, the price of BTC recorded moments of much more serious pressure and consequent devaluation. All of them were not only surpassed, but were succeeded by expressive valuations. Discover now five moments of big drop in the price of BTC.
June 19, 2011
These were the beginnings of BTC’s history. Tools like CoinMarketCap didn’t even exist, and exchanges like Coinbase were still on paper. At that time, the late Mt. Gox accounted for nearly 90% of the market’s trading volume and it was there where the cryptocurrency had its first collapse.
After rising from $2 to $32 over the first half of 2011, BTC entered bearishness and even traded as low as $17.50. However, a hacking attack hit Mt. Gox and dropped the price of BTC on the exchange to just $0.01.
That’s right: the price of BTC dropped 99.9% in one day.
It didn’t last long, however. It was just a flash crash, the name given to a rapid drop in the price of an asset. This move also only occurred at Mt. Gox, so whoever took advantage of the failure had a unique opportunity.
The year 2013 was marked by the occurrence of the first major bullish rally in the price of BTC, with the apex on December 3, when the price reached $1,151.17. To give you an idea, in November one BTC was worth only $200. This means that the cryptocurrency rose by almost 500% in just one month.
However, the fall was equally rapid and intense. In late 2013, China carried out the first ban on local banks trading or allowing their customers to buy cryptocurrencies. On December 17, the price had already dropped more than 50% from its high.
Because of this restriction, the following two years were marked by strong declines. By January 2015, just a year after the crash, BTC had dropped below $200. It took nearly four years for the $1,000 barrier to be breached again, in 2017.
The year 2017, by the way, was one of the most intense in the history of BTC, especially in the second half of the year. As of July, the price of the cryptocurrency has increased in price almost 20 times.
Between November and December of that year, BTC rose from $10,000 to $19,497 on December 15, almost 100% higher. Many investors believed that the price would go up infinitely, but they were wrong on December 15th. Six days after the record, the price had already fallen by 29%.
As of 2018, the market has fully turned down. In February 2018, one BTC was already quoted at just $7,000. Between March and December, the price fluctuated between the $6,000 and $10,000 ranges with virtually no emotion.
But in December 2018, with global pessimism due to rising interest rates in the US, BTC dropped more than 50% in just a few days, reaching less than $3,300. It was a drop of nearly 85% from the all-time high of 2017.
Coronacrash: March 10, 2020
No BTC crash story would be complete without the famous Coronacrash. The Covid-19 pandemic exploded in 2020 and brought down several markets. Stock indices plummeted, stocks dropped more than 10% in several days, and on March 12, 2020, BTC plummeted from $7,911 to $4,970. It was a 37% drop in a single day, one of the biggest in cryptocurrency history.
However, that was also a positive year for BTC. In August, MicroStrategy added the cryptocurrency to its balance sheet as part of a long-term strategy. Adoption by large companies combined with increased liquidity led BTC to exceed $20,000 in November.
The appreciation that started in 2020 continued throughout 2021. After breaking the high of $20,000, BTC continued to rise until it reached its high of $63,314, achieved on April 14.
On May 7, BTC was already showing signs of falling, reaching $58,803, but the market was still bullish. On May 22nd, the optimism went down the drain and the price had already fallen 45%, quoted at US$ 34,770.
During that same period, the total cryptocurrency market cap has lost more than a third of its value, falling from $2.39 trillion to $1.58 trillion.
Can you say that the current moment is a bear market? Historically yes, as the signs point to it. At the same time, the market is still within the cycle of the last halving that took place in 2020, which also predicts strong corrections in the price.
Therefore, even with the market falling, the long-term tops and bottoms are still intact and growing.