2011: Bitcoin plunged from $32 to $2, a staggering 94% decline. This crash was fueled by early-stage market speculation, security flaws in exchanges, and Bitcoin’s status as a relatively unknown asset.
2014-2015: The collapse of Mt. Gox, once the world’s largest Bitcoin exchange, resulted in the loss of approximately 850,000 BTC. Trader confidence took a massive hit, causing Bitcoin’s price to drop from $1,100 to under $200, an 82% decline. This event raised serious concerns about exchange security and the need for stronger regulatory oversight.
2018: The ICO boom of 2017 brought an influx of speculative projects, many of which lacked substance. As regulatory crackdowns increased and fraudulent projects were exposed, market confidence crumbled. Bitcoin tumbled from $20,000 to nearly $3,000, losing 85% of its value.
2022: A series of major industry failures, including the collapse of Terra (LUNA), the depegging of UST, and the bankruptcy of FTX, led to a widespread market meltdown. Bitcoin dropped from its all-time high of $69,000 to around $16,000, a 77% decline. This downturn was further exacerbated by rising interest rates, institutional sell-offs, and regulatory pressures.
Each bear market has had different triggers, from exchange failures and speculation to regulatory shifts and economic downturns.
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