Bitcoin Crash 2018: Is that still normal?

For many, the Bitcoin Crash is probably the first since December. The end is near, at least if you believe the media. However, it is normal that Bitcoin crashes. Since the other crypto currencies are linked to Bitcoin, their prices also fall.

Every time there is another Bitcoin crash, it is a painful experience for investors. But that’s exactly when you should stay calm and look at history. Although history is no guarantee that Bitcoin will continue to grow in the future, it is often the case that history repeats itself.

Table of Contents
Bitcoin Crash: Historical corrections >40% at a glance
Bitcoin corrections and events
June to November 2011: -94% from 32 to 2 US dollars
April 2013: -83% from 260 to 45 US Dollar
November 2013 to January 2015: -85% from 1.163 to 178 US Dollar
September 2017: -40% from 4.979 to 2.972 US Dollar
December 2017 until today: -65% from 19.900 to 6.852 US Dollar
Bitcoin Crash: Historical corrections >40% at a glance

Bitcoin corrections and events

June to November 2011: -94% from 32 to 2 US dollars
The first spectacular Bitcoin crash began in June 2011 when an Mt.Gox user said that 25,000 Bitcoins were stolen from his computer, which was over $500,000 at the time. The stolen bitcoins were later put back into circulation by the thief.

Only seven days later, on June 20, 2011 (GMT+9), an Mt.Gox vulnerability caused a price drop of 17.5 US dollars to one cent per bitcoin. Access data of a Mt.Gox employee was used by the hacker to send about 2000 bitcoins to himself. However, this was only of short duration, the retail price recovered quickly.

April 2013: -83% from 260 to 45 US Dollar

Mt.Gox is again responsible for the second big Bitcoin crash. The Bitcoin stock exchange suspended trading in April 2013 after the price rose to over 266 US dollars. The Bitcoin price should “calm down”.

The trading engine of Mt.Gox was running hot, and probably Mt.Gox had problems with US Dollar payouts already at that time. After trading resumed, the bitcoin price fell to just under $54 and later stabilized at $100.

November 2013 to January 2015: -85% from 1.163 to 178 US Dollar
All good things come in threes. Also this time Mt.Gox was at least partly responsible for the Bitcoin crash. As of February 7, 2014, Mt.Gox stopped payments and as of February 25, the Mt.Gox service was no longer available.