Biggest Bitcoin Crashes Since It Was Created
The Story of Bitcoin’s Ups and Downs
Bitcoin (BTC) started in 2009 as a new kind of money — digital, open to everyone, and not controlled by banks.
But while Bitcoin became famous and valuable, it also went through many big crashes where the price dropped fast.
Here’s a simple look at the main Bitcoin crashes, why they happened, and how Bitcoin always managed to recover.
1. The First Bitcoin Crash – 2011
- High price: $32
- Lowest price: $2
- Drop: about 94%
In 2011, Bitcoin reached $32, which was a big deal at that time. But soon after, a popular exchange called Mt. Gox got hacked, and people lost trust.
Many investors sold their coins, and the price fell to just $2.
This was Bitcoin’s first major crash and showed how risky the market could be.
2. The Mt. Gox Collapse—2013 to 2015
- High price: $1,150
- Lowest price: $150
- Drop: about 87%
By 2013, Bitcoin had become known worldwide. Then, another problem hit: the Mt. Gox exchange was hacked again, losing about 850,000 BTC.
Since Mt. Gox handled most Bitcoin trades, the market fell hard and stayed down for almost two years.
This event made people start thinking about security and regulations for crypto exchanges.
3. The ICO Bubble Burst – 2017 to 2018
- High price: $19,800
- Lowest price: $3,200
- Drop: about 84%
In 2017, Bitcoin and other cryptos became super popular. Many new projects sold coins in ICOs (Initial Coin Offerings), and everyone wanted to invest.
But when many of those projects failed or turned out to be scams, prices crashed again.
Bitcoin fell more than 80%, and people started calling it the end of crypto.
Yet, this crash helped clean up the market and push for better, more serious projects.
4. The 2021–2022 Crash – The Big Sell-Off
- High price: $69,000
- Lowest price: $15,700
- Drop: about 77%
Bitcoin reached a record high in November 2021, helped by big companies, NFTs, and social media hype.
But in 2022, many bad events happened:
- The Terra/Luna project failed.
- The FTX exchange went bankrupt.
- And the US Federal Reserve raised interest rates.
All of this caused a market panic. The price dropped over 75%.
Still, Bitcoin didn’t die—it came back stronger with more rules, transparency, and investor trust.
5. The 2024 Correction – After the ETF Boom
- High price: $73,000
- Lowest price: $56,000
- Drop: about 23%
In 2024, Bitcoin reached a new record when Bitcoin ETFs (exchange-traded funds) were approved.
After that, many investors sold for profit, and miners sold coins after the Bitcoin halving.
This was not a crash, just a healthy market correction. It showed Bitcoin is now more stable than before.
Bitcoin Crash Timeline (2009–2024)
| Year | Highest Price | Lowest Price | Drop % | Main Reason |
|---|---|---|---|---|
| 2011 | $32 | $2 | 94% | Mt. Gox hack |
| 2013–2015 | $1,150 | $150 | 87% | Mt. Gox collapse |
| 2017–2018 | $19,800 | $3,200 | 84% | ICO bubble burst |
| 2021–2022 | $69,000 | $15,700 | 77% | Terra/Luna & FTX crash |
| 2024 | $73,000 | $56,000 | 23% | Profit-taking after ETF approval |
Why Does Bitcoin Crash?
Bitcoin prices fall for many reasons:
- Exchange hacks: When people lose coins, panic spreads fast.
- Too much hype: prices go too high too fast, then drop back down.
- Regulation news: Governments or banks warning about crypto.
- Market fear: Global inflation or a bad economy makes people sell.
Each of these can cause big short-term drops.
How Bitcoin Always Recovers
Every crash has made Bitcoin stronger.
After 2011, exchanges became safer.
After 2018, real companies started using blockchain.
After 2022, big investors and clearer laws entered the space.
Bitcoin keeps learning and improving after each fall.
Is Another BTC Crash Coming?
Bitcoin is still volatile, meaning prices go up and down fast.
But now it’s part of global finance, with ETFs, banks, and regulations supporting it.
Future drops might happen, but they are less extreme than before.
Smart investors focus on long-term holding (HODLing) instead of short-term trading.
Final Thoughts
Bitcoin’s story is full of highs and lows—but every fall led to new growth.
From $32 to $73,000, it proved that patience and innovation always win in the long run.
Crashes don’t kill Bitcoin—they help it evolve.
