Ah, Bitcoin. The digital gold that has turned many into crypto-millionaires… and, well, many others into crypto-folk who still get nightmares from checking their portfolios. But if you’ve been around long enough to see Bitcoin’s rollercoaster of a price history, you know that this cryptocurrency isn’t exactly known for its gentle, predictable moves.
One of the most fascinating (and often terrifying) aspects of Bitcoin’s journey is the series of massive crashes it’s endured — and more specifically, how some of these crashes have been in the neighborhood of 80% or more. Yes, you read that right — 80%. If you had been holding during those wild moments in Bitcoin’s history, you might’ve thought it was the end of the road. But what if you didn’t sell? What if you just held through the carnage and waited for the inevitable rebound?
In this article, we’re going to break down the impacts of Bitcoin’s biggest crashes, what would’ve happened if you held through them, and how this speaks to the overall strategy of holding your Bitcoin for the long term. Spoiler alert: patience might actually be the best investment strategy in crypto, even if the ride feels like a never-ending circus.
The 80% Crash Myth: A Common Tale
Before we dive into the numbers, let’s first talk about Bitcoin’s history of crashing by 80%. In the world of traditional investing, an 80% loss is absolutely catastrophic—one of those moments where the only thing that could make you feel better is your favorite comfort food and a very strong beverage.
But Bitcoin? Bitcoin has crashed 80% or more multiple times and survived to tell the tale.
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2011 Crash: After reaching an all-time high of around $32 in June 2011, Bitcoin plummeted by roughly 93% down to $2 by November. That’s an 80%+ drop, my friend.
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2013 Crash: In 2013, Bitcoin hit around $266 in April. By the summer, it had crashed down to $50, representing an 80% dip. This one was fueled by Mt. Gox exchange issues, if you remember that lovely piece of crypto history.
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2017 Crash: Bitcoin’s price skyrocketed to nearly $20,000 in late 2017, only to crash back down to $3,000 by the end of 2018. Another 80% drop. Ouch.
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2021 to 2022 Crash: After hitting a new all-time high of about $69,000 in November 2021, Bitcoin once again experienced an 80% drop, this time falling to around $15,000 in 2022.
So, in short, Bitcoin loves crashing. But what happens if you just hold on and weather the storm?
The “Hold Through the Pain” Strategy
Here’s the fun part. Imagine you didn’t panic-sell. You didn’t listen to the loud voices on Twitter (don’t lie, we’ve all been there), and you didn’t follow the herd. Instead, you took the Zen approach — you held.
What would have happened to your portfolio if you stayed in the game during those brutal crashes?
2011: The Early Days of Bitcoin
If you were an early Bitcoin investor (say, you bought 100 BTC at $0.50 each), then you saw your holdings skyrocket to $32 per BTC by June 2011. After the crash, however, your Bitcoin’s value would’ve dipped back to $2. At that point, it would’ve been easy to get discouraged.
But if you held? Your 100 BTC would have been worth $20,000 in 2017, after the price shot up to $20,000. And that’s not even counting the later years when Bitcoin topped $60,000.
It’s a reminder that sometimes the best move is to ignore the noise, even when the price looks like it’s on a downward spiral. Patience can pay off — if you’re willing to wait.
2013: The Mt. Gox Fiasco
The 2013 crash had all the drama of a high-stakes thriller. Mt. Gox, a major Bitcoin exchange, was hacked, and many feared Bitcoin’s future. The price tanked from over $250 down to $50. Many saw this as the “death of Bitcoin,” but, spoiler alert — Bitcoin didn’t die. It bounced back.
If you held through this crash, you would have seen Bitcoin hit $1,000 by the end of 2013 and even more in the following years. By 2017, Bitcoin hit $20,000, meaning your $50 BTC would have turned into a 40x gain.
2017: The Great Bull Run and Crash
In 2017, Bitcoin went on a meteoric rise. Everyone and their dog was talking about it. Then came the crash, down to $3,000. If you held your Bitcoin through this crash, you would’ve seen another massive increase in value.
Bitcoin didn’t just recover — it absolutely obliterated its previous highs, reaching $69,000 in late 2021. A person who bought in at $3,000 and held through the pain could’ve made 20x their investment.
2021 to 2022: The FOMO Cycle Continues
The latest big crash came after Bitcoin hit its highest price ever in 2021, only to plummet in 2022. If you were holding Bitcoin throughout this crash, you would’ve seen your $60,000 Bitcoin dip down to $15,000.
But, hold your horses! The fact that Bitcoin came back again and is still above $25,000 (as of writing this) shows its resilience. Holding through these dips is looking like a sound strategy in hindsight.
What Does This All Mean?
So, you’re probably wondering: “Why does Bitcoin always crash like this? And how can I benefit from it?”
The short answer: volatility is the price of admission.
Bitcoin, being a relatively new asset class compared to traditional investments, is prone to extreme swings. However, these crashes are often followed by huge rallies, and the trend over time has been upward. If you had held through all of Bitcoin’s 80% crashes, you would’ve been in the black by a significant margin.
But, let’s be clear — holding through these crashes takes a stomach of steel. If you sold in panic during any of these crashes, you probably would have missed the boat when Bitcoin rebounded.
Why You Should Consider Holding
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Long-Term Growth: Despite its frequent crashes, Bitcoin has shown a long-term upward trend. If you buy and hold for the long run, your chances of seeing positive returns improve.
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FOMO Protection: By holding, you don’t need to worry about trying to time the market (which is impossible).
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HODL Culture: If you’re in it for the long haul, then HODLing isn’t just a strategy — it’s a lifestyle.
Bitcoin is Volatile, But It’s Also Resilient
Bitcoin’s history is full of heart-stopping crashes and mind-blowing rebounds. Each time it drops 80%, it feels like the end — but it’s not. If you had held through the crashes, you would’ve been rewarded with some of the best returns in the investment world.
The key takeaway? Don’t panic during the dips. The Bitcoin market is volatile, but it’s resilient. So, if you’re holding through the next crash, just remember — this is the ride you signed up for. Keep your hands inside the rollercoaster at all times, and maybe have a stiff drink on hand when those 80% crashes hit.