If you don't know what to do in the face of bitcoin's -30% drop this past week, we will quickly see here the other big falls that the king of crypto has already experienced.
A lot of people entered cryptocurrencies in 2021 (just like a lot of people entered in 2017) and usually, at the first drop, these same people panic and leave. Of course, most will stay because we quickly fall under the spell of this technology, don't we?
In short, if you panic and see your wallet in the red, let us tell you and summarize the biggest crises that bitcoin has already experienced.
This is not to give you instructions just to know that it is specific to the financial market that assets experience rises and falls.
Likewise, announce the death of Bitcoin is part of the story too. Bitcoin has died countless times. Count on the mainstream press to remind you of this.
First major crisis: June 2011, BTC loses 99% of its value
At that time, bitcoin was a big unknown that was barely two years old. There was no site that really talked about it and only a few insiders had heard of bitcoin. Among them, we can cite followers of the cypherpunk movement, geeks interested in cryptography and a few people from the darkweb (silk road was on track at that time).
At that time, it was Mt.Gox (the famous platform managed by Mark Karpeles with an excellent documentary on Youtube about it, here) that we were trading bitcoin. Bitcoin in 2021 reached $32 and fell to a few cents in one day following a hack on the platform. Yes, bitcoin. had fallen by 99% in a single day!
This was the first time that bitcoin was declared dead. It was a super quick crash and a few hours later, bitcoin returned to green colors.
December 2013: China begins banning cryptocurrencies
At that time, bitcoin began to be known and used among a wider (even if very limited) population. BTC goes from $200 to $1100 at the beginning of December and bam on December 17, the price drops by half! 50% loss in one day again!
The reason for this fall followed the first ever ban on the use of cryptocurrencies in China. More precisely, China prohibited banks from having links with cryptos (transfers, etc. to platforms).
It was the first time that we felt the impact of Chinese announcements on bitcoin.
From there, it was super tough for bitcoin. The anti-crypto media kept “breaking” BTC’s face and the tulip-maniacs had a field day.
They wrote a lot of misleading articles about bitcoin, about dubious origins, about anarchist ideology, about online drug dealers who used bitcoin.
In short, 2014 was disastrous for bitcoin.
It was this year - however - that I heard about it (just in an obscure blog). I didn't buy one though, it was much more complicated at the time.
In 2015, BTC fell below $200.
From 2015 to 2017, nothing happens, bitcoin stagnates and it is below its highest peak. The media doesn't talk much about it even if some like Vitalik Buterin starting to look at it very seriously.
December 2017 and crypto winter
In 2017, it was the new bull run for bitcoin. Its price reached the famous ATH of $19,000 on December 15 and the media talked a lot about its exponential price. There, bitcoin begins to reach a wider audience. We are already talking about his incredible rise. A few days later, while many people had entered the ATH, BTC experienced a 30% drop.
And, that was just the beginning of the big fall….BTC fell below $7000 in February 2018.
And during the 6 months, it hovered below the $10,000 mark. And, the apotheosis in November/December 2018 – That’s when we opened this crypto blog, by the way, during the crypto winter yes; BTC cost less than around $6000…
Big drop in December when bitcoin was bought for $3000 and many people – once again – declared the death of BTC.
It was a very traumatic time for those who knew him…It took a lot of courage and “belief” in bitcoin to hodl, believe me.
At that time, Ethereum had just been released and we were starting to consider broader prospects for cryptocurrencies.
It was especially the year of the ICO race and the first congestion of Ethereum with CryptoKitties, the first known NFT….
March 2020
There, Covid entered our lives. Many panicked traders from classic finance started shouting all over their networks and preparing us for big global and interplanetary crises. At that time, the views on their YouTube videos exploded because bad news makes you look like a false prophet that people seem to love.
Oddly enough, it was the opposite. The FED instead injected money and we heard many investors and institutions claiming that they were investing in bitcoin and cryptocurrencies.
We can think of Elon Musk and many others who spoke positively about bitcoin in the midst of the crisis.
It didn't fail and the effect for 2021 was striking because in 2021 numbers, BTC reached its ATH at more than $60,000.
There was the blissful period when many people entered. The ecosystem has been enriched and NFTs have exploded. People have started talking positively about the impact of blockchain on our lives.
January 2022
In May, bitcoin had already fallen to $34,000 and now it's starting again. Some reload and others panic and resell as usual.
You should know that bitcoin is not in its first crisis (especially since here, we made a short summary based on the article by decrypt but zooming in, there were many others).
This is not the last crisis either.
Low points are seen as opportunities for some and for others, they are signals revealing deeper crises...
We could also bite our fingers and it then depends on our ability to support without needing liquidity…
So it depends on everyone's abilities.
Disclaimer : This article is provided for informational purposes only. This is not financial, legal, tax or investment advice. Always do your own research before investing in any crypto.
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