New bitcoin investors felt the thrill of the digital currency’s most recent epic rally. Now, they are experiencing the other side of that ride.
Bitcoin rose from $5,000 in March 2020 to nearly $64,000 by April 2021. It then plummeted to as low as $29,002; Friday it settled at $32,212.
As severe as the recent selloff is, though, it isn’t close to being the worst in the digital currency’s 12-year history.
Since 2012, bitcoin has endured 14 selloffs of more than 30%, six of more than 50%, and three of more than 80%, according to data from Visual Capitalist.
The deepest of those selloffs have been followed by long periods of flat trading. It’s a cycle that has come to be called “crypto winter.”
