Brief Narratives of BTCUSD Bear Markets

Share On Facebook
share on Linkedin

In the bid to review past Bitcoin’s bear markets, we shall look at what occurred with the king coin in the past years of the economic storm in the crypto market.


Three main factors make investing in technology difficult. The first one among them is what is referred to as “the accelerator’s dilemma.” This notion holds that most innovation, in the beginning, results in turmoil before it improves things. For instance, in the early stages of the internet, it was known for scams and pornography, but as time went on, it quickly began to transform the world and is now one of the pillars of the Information Technology (IT) age.

Secondly, innovations and new inventions may, in some cases, seem like a solution that may likely create more problems, but then we begin to realize just how much benefit the new technology is providing to our daily activities and solving some of our problems.

The third reason is that investment in this area has a reputation for being volatile. As a matter of fact, this is the fifth bear market for BTC/USD since its inception. Each of these bear markets has one or two lessons for us to learn.


The First Bear Market
In just a few short days into the year 2011, Bitcoin saw its first major recession as the value of the cryptocurrency fell from $32 to $1. Chaos resulted from a security breach at the Mt. Gox exchange, which at its height handled 80% of Bitcoin exchanges. The platform had 850,000 Bitcoins taken from it. This is the present-day equivalent of $19 BILLION. The conclusion in the hearts of many people was that Bitcoin was finished, but then the market began to rise again. It reached another all-time high in April 2013.

The Second Bear Market
Bitcoin surged beyond $100 in April 2013. By November 2013, it had reached its highest point of $1000. No one anticipated it would go that far within that same year, 2013. Then, within the next month that followed the all-time high, it fell continuously, dropping to $700. The bear market continued until January 2015. The bear market did not stop until the price reached $170.

The bear market seems to have been triggered as a result of the crackdown on Bitcoin by the Chinese central bank. They forbade local financial institutions from dealing with bitcoin. This was China’s first of many times to forbid Bitcoin.

Once again, people would think that was the end of Bitcoin. This was a widespread notion then. But then steadily, the market rose again, regaining the $1000 price mark in January of 2017.

The Third Bear Market
By 2017, Ethereum was already popular, as were some other new altcoins that were popping up. This resulted in some exciting speculation in the market, which eventually drove the bull market continuously. Bitcoin reached $20,000 at the end of 2017. Then Bitcoin saw another decline, and by the end of February 2018, due to the decline, the market had lost 60%.

What triggered this bear market was that a Japanese crypto exchange platform known as ‘Coincheck’ suffered a devastating breach or hack, which led to the loss of $530 million in the crypto market. This struck fear in the hearts of most people. Facebook and Google started blocking cryptocurrency advertisements. Application requests for Bitcoin and Ethereum were denied by the CFTC, making the matter worse.

Yet again, the notion was that ‘it is over for the crypto market’. Then, by 2020, the BTCUSD market broke the resistance at $20,000.


The Fourth Bear Market
The bull market of 2020 was a remarkable one that continued till 2021. The price skyrockets past the $20,000 resistance price level. The market reached $69,000. Then, in three months, it fell to $29,000.

What could have triggered this bear market was that the mining of bitcoin came under strong criticism due to the rise of ESG investing. Then Tesla removed Bitcoin as a payment option in May of 2020 due to environmental issues.

However, this bear market did not last long as Bitcoin started inclining again. At this time, China was cracking down on mining facilities, but even at this time, the market still rose, and it peaked at $68,000 in July 2021.

The Fifth Bear Market
By late November 2021, the Bitcoin market had begun to fall. It started falling from $68,000 by June 2022. What may likely be the cause of this bear market is the crash of Terra Luna, which affected crypto lending platforms such as Cel.

Learn from market wizards: Books to take your trading to the next level

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

Support: 1-888-992-3836 |

V: D: 20230528 19:23:53