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Bitcoin’s Historical Corrections And Why They Happened
Bitcoin (BTC) has shown a tremendous increase in value since its inception and even been considered one of the best performance institutional digital assets.
However, its price history has not been a smooth one. In fact, the leading cryptocurrency has suffered a number of significant drops (not less than 20 percent) since January 2012, as shown in an infographic by Visual Capitalist Datastream.
Bitcoin’s Massive Drops
2012
After Bitcoin recovered from the first massive drop of 42.9 percent ($7 – $4 USD) in January 2012, the price further declined by 56.3 percent ($16 – $7 USD) in August the same year, following the exit of Bitcoin Savings and Trust Ponzi scheme with about 150,000 BTC belonging to clients.
2013 – 2016
The biggest BTC drop was noted between November 2013 – January 2016, when Bitcoin price declined from $1,163 – $152 USD, which accounted for about $86.9 percent price change. This happened after the news of Mt. Gox hack, China’s ban on Bitcoin, and regulatory challenges.
2017 – 2018
In 2017, the largest cryptocurrency also dropped by over 40 percent following the breaching of Coincheck, one of the leading Japanese exchanges. The attack resulted in the loss of over $530 million worth of cryptocurrencies. Bitcoin also took a significant drop of over 83 percent ($19,666 – $3,220 USD) from December 2017 to December 2018. This had many people referring to Bitcoin as a “burst bubble.”
2019 – 2021
Bitcoin also dropped by over 60 percent between June 2019 and March 2020, which was partly induced by the coronavirus outbreak. This leads up to the recent market crash in March 2021, which was triggered by Tesla’s news that they stopped accepting Bitcoin for payment and China’s call to crack down on Bitcoin mining and trading. Bitcoin is down by about 33 percent when compared to its current price of around $38,000 USD at the time of writing.
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Following these historical corrections of Bitcoin, many people are optimistic that the cryptocurrency will rebound from the current dip.
Author
Ibiam Wayas
Ibiam is an optimistic crypto journalist. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.
