The cryptocurrency market recently experienced a significant downturn, with an astonishing $19 billion in leveraged positions liquidated following a crash on October 10, 2025. This event, although notable, did not rank among the largest percentage declines in Bitcoin’s history. In contrast, several historical crashes have dramatically shaken the market, each influenced by unique circumstances that illustrate the volatile nature of Bitcoin and the broader cryptocurrency ecosystem.
One of the most infamous incidents occurred in June 2011, when Bitcoin saw an unprecedented 99.9% drop on the Mt. Gox exchange, which at that time facilitated about 90% of all Bitcoin trading. The decline followed a major hack where 740,000 BTC were stolen from users and the company. When the hacker sold the stolen coins for mere pennies, it caused a catastrophic collapse in Bitcoin’s value. The fallout from this breach erased a substantial amount of the market’s total value, highlighting the vulnerabilities to hacking within the nascent cryptocurrency industry.
In April 2013, another meltdown occurred when Mt. Gox was hit by distributed denial of service (DDoS) attacks, resulting in a 43% drop in Bitcoin’s price from $265 to $150. The attack overloaded the exchange, preventing legitimate transactions and prompting mass sell-offs, with traders panicking amidst trading interruptions.
A series of regulatory challenges from China also played pivotal roles in Bitcoin crashes. In December 2013, the People’s Bank of China declared that banks should not engage with Bitcoin, leading to a rapid decline from over $1,200 to below $600. This regulatory stance was echoed in September 2017, when a crackdown on initial coin offerings (ICOs) and multiple exchange closures sent Bitcoin plunging approximately 25% within days, marking a significant turning point in the global dynamics of cryptocurrency trading.
The market continued to face turmoil during the COVID-19 pandemic, with a disastrous crash on March 12, 2020, termed “Black Thursday.” Following the WHO’s declaration of a global pandemic, Bitcoin plummeted from just below $8,000 to around $4,850, wiping out over $1 billion in leveraged positions and triggering widespread panic across several exchanges.
More recent events also contributed to turmoil in the crypto market. In May 2021, after Tesla revoked its Bitcoin payment plans, the subsequent crackdown on miners by the People’s Bank of China caused Bitcoin to fall 30% in a matter of hours, leading to a significant loss in market capitalization. The day became known as “Black Wednesday.”
The crisis worsened in June 2022, when Celsius, a prominent crypto lender, froze withdrawals and swaps amid severe market conditions, significantly impacting Bitcoin prices as panic set in following the earlier collapse of the TerraUSD stablecoin.
The crash of the FTX exchange in November 2022 further compounded the challenges within the industry. Reports of FTX’s liquidity issues led to a 17% drop in Bitcoin’s value within 24 hours, culminating in FTX’s bankruptcy and triggering widespread repercussions throughout the cryptocurrency landscape.
Despite these historical incidents underscoring the high volatility and systemic risks inherent in the cryptocurrency market, remarkable bullish trends often follow these downturns, illustrating the resilience of Bitcoin and its continued significance in the financial ecosystem.
