Black days of crypto market: Top 5 Bitcoin price crashes

​Over the past 24 hours, Bitcoin’s price has plummeted nearly 10%, briefly dipping below $75,000. Some have already dubbed the event a “Black Monday” for the crypto market. While newcomers may view it as a catastrophe, similar crashes have happened before.

In Bitcoin’s history, there have been at least four major collapses, each triggered by different factors. Some were caused by panic in traditional financial markets, others by internal issues within the crypto industry or geopolitical tensions. These days have become pivotal milestones — painful yet crucial moments in the evolution of the cryptocurrency market.

The bear market of 2018: The first prolonged crypto winter

In 2018, Bitcoin faced its first true bear market. After a sharp surge in December 2017 to nearly $20,000, the price began to decline. From January 6, 2018, BTC fell from $18,350 to $3,200 by mid-December — a drop of 82% over the course of the year. Despite a few attempts at recovery, the overall trend was firmly downward. This period became known as the “crypto winter” — a time of stagnation, declining interest, and the mass shutdown of crypto projects.

The 2018 bear trend unfolded due to several factors. First, the market had become overheated — the rapid growth in 2017 attracted a wave of retail investors, many of whom entered the space with little understanding of the risks involved. Second, issues with the quality and transparency of ICOs came to the forefront: a significant portion of these projects turned out to be either non-functional or outright scams.

Governments in China, South Korea, and other countries responded with strict measures, including ICO bans and the closure of crypto exchanges. Additional pressure came from major hacks, most notably the attack on the Coincheck exchange, which resulted in the theft of over $500 million. All of this unfolded against a backdrop of weak growth catalysts and declining trust in cryptocurrencies.

The 2018 bear market became the first real stress test for the crypto industry. It marked a period of cleansing and laid the foundation for a new wave of projects that would fuel the next growth cycle.

March 2020: Pandemic panic, liquidations, and a liquidity collapse

On March 12, 2020, the cryptocurrency market experienced two massive crashes within approximately 13 hours. Bitcoin briefly dropped below $4,000, marking its most severe single-day loss in seven years.

The first decline, about 25%, occurred early in the morning and was relatively orderly — largely attributed to a mass flight to cash as global equity markets were in freefall. This wave of selling was triggered by the World Health Organization’s declaration of COVID-19 as a global pandemic and U.S. President Donald Trump’s announcement of a travel ban from Europe.

However, the evening brought a second crash that broke the market’s structure. It triggered cascading liquidations of collateralized positions and forced some miners to shut down their equipment. The situation was particularly dire on the BitMEX exchange, where margin positions were backed exclusively by BTC. Massive forced liquidations were exacerbated by disappearing liquidity, spreads between exchanges widened to $500 or more, and liquidity providers exited the market.

These elements combined to create a perfect storm — a moment of chaos in which even the most seasoned crypto investors lost confidence. Yet ironically, this collapse marked the beginning of one of Bitcoin’s strongest bull markets, eventually driving the price to $60,000.

May 2021: Overheating, Musk’s tweets, and China’s crypto ban

By May 2021, the cryptocurrency market was in a state of extreme overheating. In just six months — from November 2020 to May 2021 — its total market capitalization soared from $300 billion to $2.5 trillion, more than an eightfold increase. The rapid bull run attracted a flood of capital from both retail and institutional investors eager for high returns. A major correction was looming.

At the same time, rumors began circulating in the media that the U.S. Treasury Department, led by Janet Yellen, was preparing to take action against financial institutions for using Bitcoin in money laundering schemes. Although no official statements were made, the mere possibility of sanctions triggered widespread panic among traders.

The situation was further aggravated by a series of tweets from entrepreneur Elon Musk. Earlier in the year, Musk had been a vocal supporter of Bitcoin — Tesla had invested $1.5 billion in BTC and even began accepting it as payment. But on May 13, Musk announced that Tesla would suspend BTC payments due to environmental concerns.

Loading...

At the same time, news broke from China that its central bank had declared cryptocurrencies could not be used as payment for goods and services. This combination of negative developments triggered a sharp sell-off. Bitcoin plunged below $30,000, and the overall crypto market lost a significant portion of its capitalization.

November 2022: The collapse of FTX

One of the most dramatic events in cryptocurrency history occurred in 2022. Following the sudden and high-profile bankruptcy of crypto exchange FTX, Bitcoin plunged from $21,000 to $15,500 in less than a week. Once considered a trustworthy platform, FTX had in fact concealed a massive hole in its balance sheet, with customer funds being used for risky investments.

Loading...

The market was stunned — investors lost billions, and confidence in centralized platforms was severely shaken. At the same time, interest in decentralization surged. The fall of FTX marked a turning point, thrusting regulation and audit transparency into the spotlight of the entire industry.

April 2025: Trump's "Liberation Day"

The recent crash on April 7, 2025, was anything but random. U.S. President Donald Trump signed an executive order introducing reciprocal import tariffs. For some countries, including China, Germany, and South Korea, the tariffs reached as high as 50%.

Markets reacted immediately: futures on the Dow Jones and Nasdaq fell by 3–4%. Amid growing economic uncertainty and rising global risks, investors rushed to pull capital out of high-risk assets — including cryptocurrency. As a result, Bitcoin lost over $8,000 in value in just 24 hours.

More than $900 million was liquidated in that time frame, highlighting the urgency with which traders exited their positions. Despite the 6.9% drop in Bitcoin’s price, its market capitalization remains significant. Still, technical charts suggest BTC is approaching a critical level.

Yet, despite ongoing volatility, Bitcoin could ultimately reassert its role as a hedge against traditional financial instability.

Conclusion

Each of the described crashes had its own set of causes — from macroeconomic shocks to internal scandals and overheated markets. Still, Bitcoin's history showcases its remarkable resilience: despite setbacks, its price has consistently recovered and reached new heights.

These crises serve as stress tests. They shake out speculators, reinforce long-term investor confidence, and drive industry evolution. Every crash is followed by reflection, rebuilding, and renewed growth.

Today’s downturn may seem catastrophic to some. But for those familiar with crypto’s history, it’s just another link in the long chain of Bitcoin’s maturation.