The 5 Biggest Crashes in Bitcoin’s History

Bitcoin is famous for its explosive rallies — but its crashes have been just as defining.

Over the years, Bitcoin has suffered sudden collapses, drawn-out bear markets, and sharp sell-offs that wiped out huge portions of its value. Some unfolded in days, others over years, but each one tested confidence and exposed how fragile the market could be at the time.

In this article, we’ve ranked the five biggest crashes in Bitcoin’s history by severity, focusing primarily on how deep each fall was from peak to trough. Duration and long-term impact also matter, because a fast crash and a prolonged collapse don’t affect the market in the same way.

Together, these crashes show how Bitcoin has been stress-tested again and again — and how it has responded each time.

Let’s take a look at the biggest crashes Bitcoin has ever faced, ranked from the most severe to the least.

1. The 2013–2015 Crash: Bitcoin’s First True Bear Market

Bitcoin’s largest crash unfolded over more than a year, driven by a long, grinding loss of confidence rather than a single dramatic collapse. The 2013–2015 period marked Bitcoin’s first encounter with a prolonged bear market, and the price charts from 2013, 2014, and 2015 together tell that story clearly.

In 2013, Bitcoin experienced its first major speculative boom. The year began with Bitcoin trading around $13 before accelerating rapidly through the spring.

After a sharp correction mid-year, momentum returned in the autumn, culminating in a parabolic surge that pushed prices above $1,100 by late November.

This move was fueled by early mainstream attention, growing exchange access, and the belief that Bitcoin was entering a new era of finance.

Bitcoin’s 2013 rally was driven by speculative momentum rather than market maturity, setting the stage for the prolonged correction that followed.

Bitcoin started 2014 above $750 and briefly rallied toward $900 in early January, but the move quickly failed. What followed was not panic selling at first, but a steady, persistent decline. Each attempted recovery was weaker than the last, reflecting a gradual erosion of confidence rather than a sudden shock.

Several pressures weighed on the market throughout the year:

Regulatory concerns, particularly in China, reduced speculative inflows Liquidity dried up as the 2013 hype faded Mt. Gox, then the largest Bitcoin exchange, suspended withdrawals and later collapsed entirely

The 2014 chart illustrates this clearly. Bitcoin drifted lower month by month, breaking below $600, then $500, and eventually falling into the low $300s by the year’s end. By this point, sentiment had turned decisively negative, with many questioning whether Bitcoin could recover at all.

Bitcoin’s 2014 price action reflects a slow loss of confidence, with each failed rally reinforcing a year-long downtrend rather than a single panic-driven collapse.

The final stage of the crash came in early 2015. In January, Bitcoin briefly fell to around $165, marking an approximate 86% decline from the 2013 peak. This low represented capitulation — a point where selling pressure was exhausted, and pessimism was widespread.

What matters most, and what the 2015 chart highlights, is what happened next. After hitting that low, Bitcoin stopped making new lows. Price stabilised, volatility compressed, and a slow recovery began. By the end of 2015, Bitcoin had climbed back above $400, quietly laying the groundwork for the next major cycle.

This crash remains Bitcoin’s largest peak-to-trough decline, not because of a single catastrophic event, but because it was the market’s first extended test of resilience — one that ultimately forced the ecosystem to mature.

Bitcoin’s early-2015 low marked capitulation, followed by stabilisation and the first signs of a base forming after more than a year of decline. The Guardian wrote: “Bitcoin price plunge sparks new crash fears.” Media coverage at the time reflected growing anxiety, as Bitcoin’s prolonged slide into early 2015 raised fresh doubts about whether the market could recover.

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2. The 2017–2018 Crypto Winter

The 2017 bull market pushed Bitcoin firmly into the mainstream. Prices moved rapidly, media coverage exploded, and for the first time, large numbers of retail investors entered the market.

What followed, however, was one of Bitcoin’s most severe and psychologically draining downturns — a crash that became known as the “crypto winter.”

Throughout most of 2017, Bitcoin climbed steadily before accelerating sharply in the final quarter. The year began with Bitcoin trading just under $1,000 and ended with prices briefly approaching $20,000 in mid-December.

This move was fuelled by a surge in retail participation, aggressive speculation, and a broader explosion of interest in cryptocurrencies tied to initial coin offerings (ICOs).

As the 2017 chart below shows, the rally became increasingly parabolic toward the end of the year. Price gains compressed into shorter timeframes, volatility increased, and pullbacks were quickly bought.

These are classic signs of a market driven more by momentum and fear of missing out than by sustainable demand.

Bitcoin’s 2017 rally exhibited classic late-cycle behavior, characterized by parabolic price action driven by retail speculation and the fear of missing out.

The turning point came almost immediately after Bitcoin reached its peak. In early 2018, price failed to reclaim the highs and instead began a sharp correction. What followed was not a brief pullback, but the start of a prolonged bear market that would last the entire year.

Several forces combined to drive the downturn:

The collapse of the ICO bubble removed a major source of speculative demand Retail enthusiasm faded as losses mounted Regulatory scrutiny increased across multiple jurisdictions Leverage built up during the rally began to unwind

Unlike earlier crashes, this decline unfolded in stages. The 2018 chart shows a series of lower highs and lower lows, punctuated by short-lived relief rallies. Each bounce gave way to further selling, gradually eroding confidence as the year progressed.

By mid-2018, Bitcoin had already lost more than half its value from the peak. Attempts to stabilise around the $6,000 level failed later in the year, triggering a final sell-off into December. Bitcoin ultimately bottomed near $3,200, marking a drawdown of roughly 84% from its 2017 high.

Bitcoin’s 2018 decline unfolded in stages, with repeated failed rallies and a final capitulation after support near $6,000 broke. CNBC wrote: “Bitcoin is down more than 80% from last year’s high, nearing its worst-ever bear market.” Bitcoin had fallen more than 80% from its late-2017 highs, a slump that mainstream outlets highlighted as one of the deepest routs in its history, sparking fresh fear that the crypto winter might never end.

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3. The 2021–2022 Crash: Macro Shock and Industry Failures

Bitcoin’s most recent major crash followed its all-time high in November 2021, when prices peaked near $69,000. Unlike earlier downturns driven primarily by internal market excess, this cycle marked Bitcoin’s first full confrontation with global macroeconomic pressure.

Throughout most of 2021, Bitcoin benefited from extraordinary monetary conditions. Low interest rates, aggressive stimulus, and a broad appetite for risk assets pushed capital into equities, crypto, and speculative investments.

Bitcoin surged from under $30,000 at the start of the year to over $67,000 by November, fuelled by institutional participation, growing derivatives markets, and the narrative of Bitcoin as a hedge against inflation.

As the 2021 chart below shows, this was not a smooth rally. The year featured two major peaks, separated by a sharp mid-year correction triggered by China’s mining ban and environmental concerns.

Despite that setback, the price recovered strongly into the autumn, culminating in the final push to new highs in November.

Bitcoin’s 2021 price action featured a volatile two-peak structure, shaped by macro tailwinds early in the year and external shocks such as China’s mining ban mid-cycle.

The turning point came as global conditions shifted rapidly. In late 2021 and early 2022, central banks began signalling tighter monetary policy in response to rising inflation.

Risk appetite faded across markets, and leveraged positions started to unwind. Bitcoin, increasingly traded alongside tech stocks and other risk assets, moved sharply lower as liquidity dried up.

What followed in 2022 was a prolonged and punishing bear market, amplified by a series of high-profile failures within the crypto industry itself. Several pressures combined to deepen the decline:

Aggressive interest rate hikes and quantitative tightening Broad sell-offs across equities and speculative assets The collapse of major crypto firms, lending platforms, and hedge funds Loss of confidence following exchange and custody failures

The 2022 chart reflects this clearly. Bitcoin declined in stages, with sharp drops followed by weak consolidation. Support levels that had held for years gave way as forced liquidations rippled through the system. The breakdown accelerated mid-year and again in November following industry-wide shocks.

Bitcoin’s 2022 decline was driven by tightening macro conditions and compounded by industry failures, resulting in a prolonged, multi-stage bear market.

Bitcoin ultimately bottomed near $15,500 in November 2022, representing a drawdown of roughly 75% from its peak. While severe, this crash differed importantly: it did not fundamentally challenge Bitcoin’s protocol or network security.

Instead, it exposed the risks of leverage, opaque financial structures, and overextension within the broader crypto ecosystem.

As with previous cycles, selling pressure eventually exhausted itself. Price stabilised, volatility declined, and Bitcoin began to recover as macro conditions eased and weaker participants were flushed from the market.

The 2021–2022 crash stands as a reminder that Bitcoin does not operate in isolation — but it also reinforced the asset’s ability to survive systemic stress.

The Guardian wrote: “Crypto crisis: how digital currencies went from boom to collapse.” Mainstream coverage in mid-2022 highlighted how Bitcoin and other digital assets plunged after the Terra collapse, wiping trillions off the market and shaking investor confidence.

4. The 2011 Crash: Bitcoin’s First Major Collapse

In 2011, Bitcoin’s rally proved to be brief and unstable. Once selling pressure emerged, there was little depth in the market to absorb it. Prices collapsed just as quickly as they had risen, falling by more than 90% in a matter of months and briefly trading near $2.

The drivers of the crash were structural rather than economic. Early exchanges were prone to outages and security issues, liquidity was extremely limited, and there was little shared understanding of how to value the asset. In such a fragile environment, even small disruptions were enough to trigger widespread selling.

What makes the 2011 crash significant is not only the scale of the decline, but the fact that Bitcoin survived it at all. Despite long periods of stagnation and widespread doubts about its viability, the network continued to operate, development persisted, and a small base of long-term believers remained.

In hindsight, the 2011 collapse stands as Bitcoin’s first true stress test — one that demonstrated resilience long before the asset gained broader recognition.

Bitcoin’s 2011 crash revealed the fragility of an early, illiquid market — and the resilience of the network that survived it.

The causes of the crash were structural rather than economic. Early exchanges were prone to outages and security issues, liquidity was extremely limited, and there was little understanding of how to value the asset. A single disruption or loss of confidence was enough to trigger widespread selling.

What makes the 2011 crash significant is not just the magnitude of the decline, but the fact that Bitcoin survived it at all. Despite doubts about its viability and long periods of stagnation, the network continued to function, development continued, and a base of long-term believers remained.

In hindsight, the 2011 collapse stands as Bitcoin’s first real stress test — one that proved the protocol could endure even when its market nearly disappeared.

The BBC wrote: ‘Bitcoin ‘will recover’ from crash.” After Bitcoin’s sharp fall in June 2011, figures quoted by the BBC suggested the crash reflected the growing pains of an experimental technology rather than its failure.

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5. The April 2013 Crash: Bitcoin’s First Bubble Snap

Bitcoin’s first true speculative bubble burst in April 2013, marking the asset’s earliest encounter with rapid, large-scale hype followed by an equally violent correction. At the time, Bitcoin was beginning to attract wider attention beyond niche communities, but the infrastructure supporting that interest was not yet ready.

In the opening months of 2013, Bitcoin climbed steadily from around $13 as new users entered the market and early exchanges struggled to keep up with demand.

Momentum accelerated sharply in late March and early April, culminating in a rapid surge that pushed prices above $260. For the first time, Bitcoin displayed the hallmarks of a classic bubble: vertical price movement, overwhelming retail interest, and growing strain on trading platforms.

The turning point came abruptly. As trading volumes spiked, major exchanges — most notably Mt. Gox — experienced outages, order backlogs, and temporary halts.

Confidence evaporated almost instantly. Within days, Bitcoin collapsed from its peak, falling toward the $50–$70 range in a sharp, panic-driven sell-off.

Bitcoin’s first major speculative bubble peaked above $260 in April 2013, before collapsing within days, exposing the fragility of early exchange infrastructure and market confidence at the time. The BBC wrote: “the Bitcoin bubble.” In April 2013, Bitcoin’s first major speculative bubble burst after a rapid surge in price overwhelmed fragile exchange infrastructure, triggering outages, panic selling, and a sudden loss of confidence that sent prices sharply lower within days.

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Conclusion

Bitcoin’s largest crashes offer a clearer picture of its history than its rallies alone. Each major downturn revealed a different vulnerability — from fragile early exchanges and speculative bubbles to leverage, industry failures, and global macroeconomic shocks.

What links these events is what followed. Every crash forced the market to reset, washing out excess and testing conviction, while the underlying network continued to function. Over time, each recovery emerged on firmer ground, shaped by the lessons of the previous collapse.

Bitcoin’s path has never been smooth, and sharp volatility remains part of its character. Yet its repeated ability to endure severe downturns continues to define its long-term story — one built not on uninterrupted growth, but on survival through stress.

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