BlocksInform
2022 was undoubtedly an awful year for his brothers. However, the crypto industry and markets have been there several times in the past.
There were four main bull/bear cycles in the short 12-year history of Bitcoin. Every time, the assets and the industry are deregistered and declared dead by the doomsday prophets and the general public media.
Furthermore, Bitcoin has ‘died’ 467 times, according to 99Bitcoins’ obituaries page! The first BTC declaration of "death" took place in December 2010 and most recently on November 30, 2022. The year in which there were the most "deaths" was 2017, when the general public media wiped out assets at least 124 times.
The world's largest, greyscale, institutional crypto asset manager has summarized ten incidents in which Bitcoin has rebounded from catastrophic collisions.
Crypto proved to be incredibly resilient, surviving through difficult conditions. Our latest blog explores some of the largest drawdowns in the history of #Bitcoin, and what investors today might be able to learn from them: https://t.co/qjHcZSvHZhpic.twitter.com/9q4qcfuPb3
— Grayscale (@Grayscale) December 7, 2022
Bitcoin Bouncing Back
The first major BTC price meltdown occurred in 2011, when assets fell by 99%. The fallout of the Mt. Gox hack and meltdown sent prices tumbling from $32 to $0.01 on the embattled exchange.
At the end of 2013, Bitcoin fell by 80% within 24 hours after the Chinese government published a ban on financial institutions using the asset as a form of payment.
Another mt. gox hack in February 2014 brought down BTC prices by almost 60%. The exchange managed as much as 80% of Bitcoin's global trade back then.
hack in mid-2015 battered both Ethereum and Bitcoin prices at the time. Ethereum was in the pitchfork. The existing chain became Ethereum Classic (ETC), and the new blockchain became the Ethereum (ETH) as we know it today. There was also a hacking of bitfinex in 2016, which caused the collapse of BTC prices.
A massive repression of initial parts offers (icos) in 2018 saw BTC prices fall by 84% at the end of this year. Prices plummeted to $3,200 after peaking at $20,000 in late 2017.
In March 2020, Btc prices were hammered when global governments started their lockdowns and markets fell. More than 50% was lost as BTC dumped to around $5,000 in that black swan event
Bitcoin markets saw two capitulations this year in May and November. They both followed the collapses of major platforms Terra/Luna and FTX, respectively. The former experienced a 50 per cent reduction in construction prices from $40,000 to $20,000 in two slides in May and June. The second resulted in a 25% crash following the FTX meltdown
Bitcoin has bounced back after every incident so far, and there is no reason why it won’t do the same again this time around.
To put this into perspective, the Building and Construction industry is currently recording 134% more than it was three years ago.
Let’s look at a brief history of some of #Bitcoin’s scariest moments, and what we can learn from them today: https://t.co/xIyDmGNBjPpic.twitter.com/BJII4btmNi
— Grayscale (@Grayscale) December 15, 2022
BTC Prices into 2023
BTC prices have declined 63.5% since the beginning of 2022. They reached the bottom of a $15,700 bear cycle on November. 22 but found a little self-control to stay connected at a distance since then.
Market bull signals are not expected until the middle of 2023, analysts say. In the meantime, consolidation should continue with the potential for a slight increase to the $20,000 level.
The May 2024 BTC halving event will likely be the primary catalyst for a bull market if history rhymes. The year before the cut by half has already experienced a slight upturn before the bull rally after the reduction in rewards per block.
