Undoubtedly, 2022 was a disastrous year for Bitcoin. However, this most popular digital currency in the world, in its short life of 12 years, has witnessed such big cycles of falling and rising in price many times; Even while skeptics and critics announced the death of Bitcoin every time.
To the report BINCrypto, citing the death announcement page of the 99Bitcoins website, the death of Bitcoin has been announced 467 times so far. The first report of the death of Bitcoin was in December 2010 (November 2010) and the last one was on November 30, 2022 (December 9, 1401). The year 2017 (2016) marked the most death-reported recession, when major media announced the asset’s end-of-life at least 124 times.
Gary Scale, the world’s largest institutional cryptocurrency asset management firm, reviewed 10 instances where Bitcoin rebounded after a catastrophic crash.
Bitcoin is back in the game
The first significant fall in the price of Bitcoin occurred in 2011 (1390), when the value of this asset decreased by 99%. The consequences of hacking and the fall of the MT Gox exchange caused the price of Bitcoin to drop from $32 to $0.01 in the exchanges under pressure.
In late 2013, after the Chinese government banned the use of Bitcoin as a payment method for organizations, the price of the asset fell by nearly 80% within 24 hours.
The hacking of the MT Gox exchange in February 2014 led to a 60% drop in the price of Bitcoin. At that time, 80% of the world’s bitcoin transactions were done in this exchange.
The Dow hack in the middle of 2015 affected the price of Ethereum and Bitcoin. Ethereum experienced a hard fork; The existing chain became Ethereum Classic and the new blockchain was named Ethereum. Also, the Bitfinex hack in 2016 caused the price of Bitcoin to fall once again.
The severe (legal) handling of the initial coin offering in 2018 (2017) caused the price of Bitcoin to fall by 84% by the end of the same year. After reaching a peak of $20,000 at the end of 2017, the price dropped to $3,200.
In March 2020 (March 2019), with the start of the quarantine program by the governments of the world and the collapse of the market, the price of Bitcoin decreased by more than 50% in a strong black event and reached about 5,000 dollars.
The Bitcoin market this year saw two surrender events in May and November following the collapse of the Terra/Luna ecosystem and the collapse of the FTX exchange. First, during the months of May and June (May and June), with a 50% decrease, the price of Bitcoin increased from $40,000 to $20,000. The latter caused a 25% drop in price after the collapse of FTX.
Bitcoin has bounced back after every price crash, and there’s no reason why it won’t do it again this time.
If you look more broadly, Bitcoin is currently trading at a price 134% higher than it was 3 years ago.
Bitcoin price in 2023
The price of Bitcoin has decreased by 63.5% since the beginning of 2022; On November 22, it reached the lowest level of its downward cycle, $15,700. But since then, price fluctuations have calmed down a bit and the market continues to suffer.
Analysts do not expect the bull market to begin until mid-2023. Until then, the current steady trend is likely to continue with the possibility of a slight price increase to reach the $20,000 level.
If the historical trend repeats itself, the next bitcoin halving event in May 2024 will likely be the main catalyst for the start of a bull market. In past periods, a year before the halving, we have seen the market grow slightly before starting an upward trend after the mining reward halving.