Bitcoin does not die: what have we learned from every major decline?
By: Sharif Al-Ajaty
Since its launch in 2009, Bitcoin has gone through a series of sharp rises and falls, to the point where some describe it as 'the most volatile asset in financial market history.'
But the strange thing is that every crash that was thought to be 'the end' proved afterwards that Bitcoin does not die.
In this article, we review the most notable historical declines of Bitcoin, and what we can learn from them as investors and market followers.
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1. The crash of 2011: from $32 to $2
In the first real 'bubble', Bitcoin rose from less than $1 to $32 in mid-2011, before collapsing to around $2 by the end of the year.
The main reason was the hack of the Mt. Gox platform - which dominated 90% of trading at the time.
Lesson:
The weakness of the infrastructure at the time made Bitcoin vulnerable to attacks, but community trust in the idea survived nonetheless.
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2. The crash of 2013-2015: from $1,150 to $170
At the end of 2013, Bitcoin first surpassed $1,000, but the Chinese government began to tighten control on trading platforms, and with the official collapse of Mt. Gox in 2014, the market entered a harsh winter.
The price dropped below $200 in early 2015.
Lesson:
Bitcoin is not only affected by speculation but also by government policies and market structure. Nonetheless, those who survived this crash saw the currency rise thousands of times later.
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3. The crash of 2017-2018: from $20,000 to $3,200
The most famous bubble in Bitcoin history, when millions of new investors entered the market through ICOs and promises of quick riches.
After reaching $20,000, the price gradually collapsed until it reached $3,200 by the end of 2018.
Lesson:
Bubbles are built on greed, and crashes build experience. This was the first real experience for new investors, who learned the importance of risk management.
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4. The crash of 2021-2022: from $69,000 to $15,500
At the end of 2021, Bitcoin recorded its highest price in history at $69,000.
However, rising inflation, the tightening of monetary policy by the US Federal Reserve, and the collapse of major projects like Terra/Luna and FTX led the market to a violent crash.
Bitcoin lost more than 75% of its value in 13 months.
Lesson:
Even a mature market is subject to shocks due to corruption and fraud in some projects. Trust is not easily granted.
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5. The current market: Is it a correction or the beginning of a new crash?
With Bitcoin returning above $70,000 in 2025, followed by violent corrections in April, some began to wonder:
Are we on the brink of a new winter?
Or is what is happening just a fighter's break before a new surge towards the peak?
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Summary:
Bitcoin is not just a financial asset; it is a psychological and intellectual test.
Those who lack patience lose. And those who do not study history repeat their mistakes.
Every decline was seen as the end... but in reality, it was the beginning of a new maturation phase.