What can really scare a true crypto enthusiast on a good (or not so good) Thursday? Only one of the crypto monsters from WhiteBIT's new Halloween activity, namely Flashcrash Fiend. Let's face this fear and take a look at some of the most iconic flash crashes that have rocked the industry.
June 2011: Hack at Mt. Gox.
‘Hey guys, it's Nick.’ That's how one of the most memorable YouTube videos began, with BookofNick reporting on the dramatic collapse of $BTC : from $17.50 to 1 cent! A hacker attack on Mt. Gox, the exchange that processed more than 70% of all Bitcoin transactions, resulted in the loss of 750,000 BTC. The asset ended the year with a price below $5, leaving investors in shock.
December 2013: China's FUD
2013 was the year when cryptocurrencies began to attract a wider audience. However, the Chinese central bank caused panic by banning the use of BTC as legal tender. The price of Bitcoin fell by more than 50%, from $1,200 to $600. This crash only increased interest in cryptocurrencies, although investors remained wary.
December 2017: Before the crypto winter
2017 was the year when BTC hit the $20,000 mark. But 12 days later, the price crashed to $12,840. This crash hit not only Bitcoin but also other cryptocurrencies such as Ethereum and Bitcoin Cash. Investors once again realised the unpredictability of the market.
March 2020: The pandemic strikes
When COVID-19 began to affect the global economy, crypto assets were hit hard. Bitcoin fell by 57%, hitting a low of $3,867. But, as history has shown, this crisis has become the impetus for a new surge in the popularity of cryptocurrencies. Over the following months, big businesses began to actively invest in Bitcoin.
May 2022: Terra's downfall
After a successful 2021, the crypto market suffered a catastrophe when the Terra system and its stablecoin UST collapsed, losing its connection to the dollar. This led to a 37% drop in the value of BTC in June. At the same time, companies such as Three Arrows Capital and Celsius experienced serious financial difficulties.
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