Earlier this week, the world’s bellwether cryptocurrency, Bitcoin, once again crashed as its price plummeted below the $90,000 level and then nosedived under $85,000 for the first time since April of this year, when Donald Trump initiated a trade war with Canada, Mexico, and China.
While the crypto market is experiencing its second most brutal sell-off this year, with more than $2 billion worth of crypto assets wiped off in a matter of days, we decided to recap the five worst Bitcoin price crashes when BTC suffered mammoth losses within the shortest periods of time.
Key Takeways
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The price of Bitcoin has seen multiple largest Bitcoin crashes in history, often losing half its value during extreme market conditions.
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Since Bitcoin started, the bitcoin market has repeatedly plunged due to global crises, regulatory pressure, and failures of major exchanges.
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The crypto market crash of 2018, Covid-19 in 2020, China’s crackdown in 2021, and the 2022 Terra/FTX collapse were some of the biggest crashes ever.
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In 2025, geopolitical tensions caused another sharp drop as bitcoin’s price reacted to uncertainty in the broader crypto world.
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History shows that BTC’s dramatic price swings remain common, even on the largest cryptocurrency and biggest bitcoin exchange platforms.
| Day | Minimum Price | Average Price | Maximum Price |
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1. The “Crypto Winter” of 2018
This most painful and longest price decline hit Bitcoin after the glorious bull run of 2017, which peaked in BTC surging to an all-time high at approximately $20,000 per coin, which coincided with the CBOE and CME exchanges launching the first-ever Bitcoin-based futures contracts in December of that year. In January, the price began to go down rapidly, and ultimately it collapsed by approximately 80% as Bitcoin was struck with pressure from regulators, failures of various crypto exchanges, and the quickly expanding lack of confidence across the whole crypto ecosystem.
The Bitcoin market suddenly found itself unable to sustain the created hype and FOMO (fear of missing out), leading to one of the biggest bitcoin crashes in history. Many retail investors decided to pull out their funds and the sudden hyped turned into FUD – fear, uncertainty, doubt, which shook the Bitcoin market down to its very foundation and pushed it into a long crypto winter that lasted several years. That price collapse was followed by the Bitcoin Cash chain split initiated by the self-proclaimed Satoshi Nakamoto – Craig Wright – and his team in November 2018. This event also pushed the Bitcoin price down significantly, reinforcing the volatility seen in the cryptocurrency market.
2. March 2020 – liquidity drain shock caused by Covid-19. Black Thursday
The second big price drawdown took place in 2020 – the year when the pandemic marched around the globe. In March that year, a gigantic wave of panic and fear hit the cryptocurrency market, freezing it nearly to death with crude oil crashing below the zero level for a few days. With lockdowns spreading around all the continents, hitting local economies hard, traditional markets tumbled, and crypto markets faced severe stress.
On Thursday, March 12, oil collapsed and Bitcoin went down 40-50%, bottoming below the $4,000 mark, illustrating the extreme volatility of the bitcoin market. That day was followed by Friday, March 13, when the bloodbath continued, lasting for the following few days. Leverage unwound, and investors began to sell all risky assets, including stocks, bonds, and crude oil, grabbing cash as a safe haven, which often precedes a bitcoin crash. Back then, the correlation between Bitcoin and broader traditional markets became clear.
3. May-June 2021 – China’s Bitcoin crackdown and Tesla’s reversal on BTC
The third major Bitcoin price crash took place in late spring-summer of 2021. By that time, the crypto market had been largely overheated, having surged from around $300 billion to $2.5 trillion thanks to impressive inflows from both institutional and retail investors. Right before that, Bitcoin reached its first all-time high that year, roughly around $60,000, before facing the subsequent bitcoin crash. It happened after in February Elon Musk announced that Tesla had acquired $1.5 billion worth of Bitcoin and started accepting BTC as payment for its electric cars, a move that many believed would prevent future bitcoin crashes.
In April, the biggest bitcoin crash was reached. However, after that, Musk tweeted that Tesla reversed and shut down BTC payments due to environmental issues related to Bitcoin mining based on the energy-consuming proof-of-work algorithm. This decision of the tech giant sent shockwaves through the crypto market. The Bitcoin price tumbled rapidly, marking one of the deepest collapses driven by tech factors and influencers, contributing to the list of biggest bitcoin crashes in history.
| Month | Minimum Price | Average Price | Maximum Price |
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4. 2022 – TerraUSD/LUNA crash and FTX collapse
The fourth tremendous price fall of Bitcoin came in May 2022, triggered by the collapse of the Terra ecosystem. Technically, it began with the crash of its algorithmic stablecoin TerraUSD, followed by the smashing collapse of the platform’s native token LUNA price, triggering fears of a broader bitcoin crash. This event devastated the crypto markets, causing a terrible ripple effect along them. This pushed Bitcoin from its highs achieved earlier that year as it shed around 60-70% of its value over the next few months.
Following that, in early November 2022, another dark event occurred – one of the leading and fast-expanding crypto exchanges, FTX, led by Sam Bankman-Fried, went bankrupt owing billions of dollars to investors, and Bankman-Fried was sent to prison for two decades for defrauding FTX customers. This was the reason for yet another massive Bitcoin price crash – BTC fell to around $16,000, marking one of the most notable bitcoin crashes.
5. 2025 Trump’s trade wars and military operation in Venezuela
The fifth major Bitcoin price collapse took place in March 2025, when Donald Trump, re-elected as the US president, implemented high trade tariffs against imports from other countries. First, his choice fell on Canada, China, and Mexico, with the tariffs against China being the highest ones, which indirectly affected the cryptocurrency market. After this, Bitcoin again surged, scoring several new all-time highs this year.
Despite Trump and his administration approving Bitcoin as an official reserve asset of the US and signing an executive order to build a Strategic Bitcoin Reserve, earlier this week, Trump announced and then began a military operation in Venezuela, called the Southern Spear, to protect the US from regular inflows of drugs from this country, as he put it. This pushed BTC to roughly $84,600. However, by now it has managed to recover the $86,000 range after experiencing significant fluctuations typical of a bitcoin exchange.
Traders continue to watch the market, with many retail and institutional investors buying the dip at the moment to reaffirm their strong long-term bullish position on Bitcoin. However, with the current geopolitical situation around the US and Trump’s external policy, it seems that the chances of BTC reaching a new all-time high this year remain rather low, especially considering the recent bitcoin crashes in history.
| Year | Minimum Price | Average Price | Maximum Price |
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FAQ
What was the worst Bitcoin crash?
The worst bitcoin crash was in March 2020 during the COVID-19 pandemic, when BTC plunged nearly 50% in a day. Other major drops include June 2011, December 2017, and the 2022 crypto winter — all among the biggest Bitcoin crashes in history.
Who lost $800 million Bitcoin in landfill?
It was James Howells, who accidentally threw away a hard drive containing hundreds of millions in bitcoin, now buried in a landfill.
What if I invested $1000 in Bitcoin 10 years ago?
A $1,000 investment in BTC ten years ago would likely be worth hundreds of thousands today, even after multiple crypto market crashes and volatility.
Can Bitcoin recover after a crash?
Yes. Bitcoin has recovered after every major price crash, including 2011, 2017, March 2020, and 2022, as the cryptocurrency market eventually stabilizes.
