Panic in the crypto market, but Bitcoin has survived much worse

Tensions on the crypto market are rising rapidly. Bitcoin (BTC) has lost almost half of its value since October, causing panic among investors. Yet the current decline is far from unique. In the past, the largest cryptocurrency suffered crashes that went much deeper.

Bitcoin price experienced extreme crashes more often

The Bitcoin price has been fluctuating wildly for years. BTC currently stands at around $68,000, down 46 percent since its peak of over $126,000 in October. That causes concern, but if you look back in history, you will see that Bitcoin (BTC) has already endured much deeper declines.

Crashes of fifty to eighty percent are the rule rather than the exception. The past offers no guarantees, but it does show that recovery has proven to be possible again and again.

An overview of previous major corrections:

• In 2012, BTC lost 56 percent after a Ponzi scheme.
• In 2013, the stock plummeted 83 percent due to the collapse of Mt. Gox.
• Later that year, the price halved again after a ban from China.
• In 2018, Bitcoin fell 84 percent after the hype around $20,000.
• During the corona crash in March 2020, the currency lost 50 percent in two days.
• A 77 percent crash followed in 2022, partly due to the collapse of Terra (LUNA) and FTX.

Bitcoin survived all these crises. But anyone who thinks the bottom has already been reached should beware: compared to previous crashes, a drop of 46 percent is still relatively mild.

Big investors change the playing field

What distinguishes this market cycle from previous ones is the growing role of institutional parties. According to figures from BitcoinTreasuries, 194 listed companies together own 1.36 million Bitcoin (BTC). That is approximately 6.8 percent of the total supply, with a market value of more than $77.5 billion.

Many of these coins seem to be disappearing from the market for good. Companies like Strategy and Metaplanet have openly stated that they never want to sell their Bitcoin holdings again.

Exchange-traded funds (ETFs) are now also playing a leading role. Together they manage 1.6 million BTC, worth almost $109 billion. According to analysts, a large part of this inflow consists of institutional investors with a long-term view.

This strategy ensures less selling pressure and additional purchasing power when prices fall. Several companies are using the recent dip to stock up further. Strategy announced another $168 million purchase of Bitcoin this week.

Important support around Bitcoin’s old top

The Bitcoin price is currently hovering around a crucial level: the old all-time high of approximately $69,000. According to analyst Jelle, this price point now functions as a technical support level, where buying interest is clearly visible.

“Either BTC breaks lower again, or we see consolidation before the market takes direction again,” he said. The chart shows a test of a historically important level.

Jelle emphasizes that patience is now essential: “Without a clear breakthrough, it remains to be seen whether Bitcoin will start a new decline or resume an upward trend.”