Last night, cruising along in a discord forum, I got to watch the latest panic attack as folks around the world started pinging why the crypto market was "falling apart" again. In reality, BTC dropped a scant $3,000 in value. My response was mainly, "me", and then I added to a few positions I had, looking for some gain as the panic subsides and value return back to equilibrium later next week.

The thing is, since its inception in 2009, Bitcoin has experienced numerous ups and downs, with far more significant market crashes than what happened yesterday on June 9. Here are some of the bigger cardiac arrests that made notable history:

The 2011 Crash

Bitcoin's first major crash took place in 2011, just two years after its introduction. In June of that year, the price of Bitcoin plummeted from a high of $31.91 to a low of $2.14—a staggering decline of over 93% (seriously, can you imagine BTC being bought at $2?!?). The crash was primarily attributed to the hacking of the Mt. Gox exchange, one of the largest Bitcoin exchanges at the time. The incident led to a loss of trust among early Bitcoin adopters and highlighted the vulnerability of centralized exchanges.

The 2013 Crash

Bitcoin's next significant crash occurred in 2013, marking the end of the currency's first major price rally. In April, the price surged to an all-time high of $260 before experiencing a sharp correction. Over the course of a few days, the price plummeted by more than 80%, reaching a low of around $50. This crash was mainly driven by a combination of regulatory concerns, the collapse of the Mt. Gox exchange (again), and a general market panic among speculators.

The 2017 Crash

Perhaps the most well-known and impactful crash in Bitcoin's history happened in 2017. This one goes down as the first real crypto winter people remember. After a remarkable price surge throughout the year, Bitcoin reached an all-time high of nearly $20,000 in December. However, the bubble eventually burst, and the price tumbled sharply. Over the course of a few weeks, Bitcoin lost about 70% of its value, dropping to around $6,000/coin. This crash was attributed to concerns over regulatory crackdowns, the bursting of the ICO (Initial Coin Offering) bubble, and the general overheating of the market.

The 2020 Crash

In March 2020, Bitcoin experienced another significant crash, coinciding with the global financial turmoil caused by the COVID-19 pandemic. As fear gripped global markets, Bitcoin's price dropped by more than 50% in just a couple of days. This crash demonstrated Bitcoin's vulnerability to external factors, pandemics of all things, and the surprising interconnectedness of the cryptocurrency market with traditional financial systems and their vulnerabilities.

While the crashes noted above have often been accompanied by panic and uncertainty, they have also provided opportunities for growth, learning, and maturation within the cryptocurrency ecosystem. Most importantly, a lot of maturity as set in. As the related market continues to evolve, it's essential to remember that Bitcoin's price volatility is inherent to its nature as a decentralized and emerging asset class.

In other words, stop panicking every time there is a burp or correction. It's par for the course. Focus more on the overall trend and where you can find dips to enter and high points to exit. See my article on understanding market averages, which can help significantly if you're looking to trade frequently versus being a buy-and-hold type.

Source:  Hugo Lin/Investopedia