This month has been a roller coaster for Bitcoin. The month started off very strong setting records at five thousand dollars before losing forty percent of its worth. This month’s drops have occurred because of legal concerns, China bans, and also the fear of a bubble. But how does this slide rank against the 4 other most notable bitcoin crashes in its 8 year life span.
3 early year crashes
The highest percentage drop for bitcoin occurred in April of 2013 for 71%; changing the price from $233 to $67. This crash occurred because an increase of media coverage resulted in the mass purchase of stocks. The market soared, only to come crashing right back down on itself.
The next crash also came in 2013. In late November the price reached $1150 before falling to $500 for 53% change. This crash occurred due to a gradual rise in stock price. Newer investors feared a bubble occurring and sold stock. Which caused exactly what they feared the most.
2014 hosted a very long drawn out slide for bitcoin. The stock lost 49% of its value going from $867 to $439. The main slide began in early February and petered out at the end of the month. However this crash in particular did lead into a resurgence until 2016. This drop was caused by the hack of one of the most popular exchange sites; Mt. Gox on the 7th day of the month. This hack was reportedly worth 850 thousand bitcoins.
The 2 late fallouts
2017 was the start of the Bitcoin resurgence. The market reached $1,000 once again and the growth continued. In June the market abruptly fell 36% from just over $3,000 to $1,869. AT this point bitcoin did not reach the same speed as the other cryptocurrencies in usage. This lead to the creation of Bitcoin Cash. The fear of the split was the cause of the slide.
The final and most recent slide happened this month. This drop in price was worth 37% loss and resulted in an overall drop of 30 billion US dollars on the market. This crash was brought on primarily by looming bans and regulations by China, who was a major player in exchanges and mining for years.
The rise and fall of bitcoin is going to occur. Just like any other stock that comes into the mainstream light and causes a splash. Patience is needed at times. And this cryptocurrency is here to stay.
