It has just been ten years and Bitcoin is already declared lifeless for about more than three hundreds of time. Bitcoin being news dependent with no central control and many more complications that set us in a dilemma of opting it as a good investment makes it a fragile market and for a fragile market like Bitcoin, it is easy to fall crashed. Even though, Bitcoin had the potential to resurrect and redeem its place back in space. Here are some of the Bitcoin crash and recovery that proved out to impact our memories and markets at the same time.
The early crash witnessed was in the year 2011 dated June 20 when the Bitcoin possessed a value of $29.60. The fall in the amount of Bitcoin took place within four months and was of about 92 percent decrease in its value. The value fell and hooked up at a value of $2.35 on October 20, 2011.The credible root that we can claim is the over-speculation and the Mt.Gox hack that took place.
As the banking crisis in Cyprus shot the price of Bitcoin to really, the next crash that happened to be was a dive of about 63 percent in eight days. Bitcoin valuing $181 on the 10th of April, 2013 was left with a value of just $66.20 on 17th of April, 2013. Mt.Gox devastated by the high number of transactions, suspended the trading, inducing a sharp fall in its value.
So, the probable cause that we can assert is the Cyprus Crisis and crash of Mt.Gox servers.
The Investment made by China in the year 2013 made Bitcoin skyrocket its value. But then the Chinese government commence a clamp down on Crypto, by officially forbidding the domestic financial organizations from offering any sort of crypto services. The Chinese government took this step on being concerned with the expanding acceptance and fame of the Bitcoin.
The Bitcoin holding a value of $1,157 on 5th of December, 2013 rallied down to $455 on 18th of December, 2013, totaling a loss of 60 percent in just two weeks. Hence, vital cause that can be asserted as a reason for crash down could be the ban from the Chinese government.
Amidst Mt.Gox bankruptcy in February 2014, a ban from the Chinese government triggered the possessed amount of Bitcoin to decline. It just marked the beginning of a steady decline, reaching a bottom of $209.
Price declination of 71 percent showed up in eleven months, pricing from $717 to $209.
Here, the potential reason for the crash could be the shutdown of Mt.Gox.
The period of relative stability that followed paved a way for a massive crypto rally in late 2016. Inflammation in the financial worth of Bitcoin was observed. It hiked up from $430 in January 2016 to an amount worth $961 in late 2016.
China did not stop yet, they continued being the reason for the breakdown of Bitcoin by banning the exchanges and ICO’s in their country. This ban that took place, it deeply impacted the market and made it unstable for a couple of days.
The value that Bitcoin held by 1st of September, 2017 was $4,668. It then dived and stopped for a loss of about 28 percent in thirteen days. The final value after the fall turned out to be $3,344 by 16th of September, 2017. The credible root that can be claimed as a reason for deflation is China that banned ICO’s.
Sooner after the final surge, bringing prices to an all-time high, the price of Bitcoin being $20,000 by 16th of December, 2017 crashed again trembling to $13,712 by 25th of December, 2017. This deficiency was observed within a week.
Now are the instances where Bitcoin is observed to gain on good terms. No matter how many times it has jumped off the cliff, it has always found its way back up. After several falls, Bitcoin took a stance and now possess a value worth noticing.
July 2010, when the Bitcoin had a value worth $0.05, it hiked up to an amount worth $24.1 by Jan 2011.
After the Mt.Gox severe shut that brought the market down and left Bitcoin to bear a cost of $2 in October 2011. It then regained its position in the market when it regained its value by November 2013 worth $1,142.
Another tragedy for crypto space market that made Bitcoin lose its price and led the deflation of the market was the ban made by Chinese Government over the exchange, trading of Bitcoin and also a ban on ICO’s. But the Bitcoin survived throughout and brought inflation from January 2015 when the price was $164 to $19,531 by December 2017.
All in all, we can say that Bitcoin has made a significant jump from a mere value of $2 in January 2011 to a gigantic figure of $19,531 by December 2017.
As predicted, the Bitcoin price would likely boost up to $100,000 within a time from December 2018 till an unknown yet nearby future.