Overview
- The 2011 hack of Mt. Gox led to Bitcoin’s most severe decline, plummeting 99.9% as hackers sold the stolen BTC for mere pennies.
- Significant crashes have resulted from events like bans in China, panic during COVID-19, and failures of major crypto platforms like Celsius and FTX.
- A tariff threat from Trump in October 2025 spurred a 13% drop and $19 billion in liquidated positions, though it’s not noted in the biggest crashes.
The crypto market crash on Oct. 10, 2025 resulted in a record $19 billion in liquidated leveraged crypto positions. However, this was not among the steepest percentage losses for Bitcoin.
From the Mt. Gox flash crash to the FTX collapse, here is a look at the major instances when Bitcoin’s value faced extreme downturns and what caused them.
1.Flash Crash of Mt. Gox (June 2011)
This incident was monumental. Following a security breach, Bitcoin’s price dropped nearly 99.9% on Mt. Gox as hackers sold stolen BTC for as little as a penny. At the time, Mt. Gox handled about 90% of Bitcoin trading, leading to a significant market devaluation.
2.Mt. Gox Crisis (April 2013)
In April 2013, Bitcoin dropped from $265 to $150, losing nearly 43%, primarily due to DDoS attacks that disrupted trading on Mt. Gox, leading to panic selling.
3.China’s Restrictions (December 2013)
In December 2013, the People’s Bank of China restricted banks from dealing with Bitcoin, causing its price to spiral downwards from above $1,200 to around $600 within days as investors reacted to the news.
4.Another Ban from China (September 2017)
In September 2017, China banned initial coin offerings, leading to widespread panic when further reports indicated that local exchanges would close. This caused Bitcoin to drop about 25% in just two days.
5.Leverage Collapse (December 2017)
In late 2017, Bitcoin surged towards $20,000. However, market sentiment turned negative as Bitcoin futures were launched, causing it to drop from around $16,500 to about $11,000, initiating a prolonged bear market.
6.COVID-19 Crash (March 12, 2020)
The COVID-19 pandemic triggered widespread panic, leading to a dramatic drop in Bitcoin’s price from just below $8,000 to approximately $4,850, with over $1 billion in leveraged positions liquidated.
7.China’s Mining Crackdown (May 19, 2021)
In May 2021, following Tesla’s announcement to stop accepting Bitcoin, the People’s Bank of China reinforced its stance on crypto, leading to a sharp drop of around 30% in Bitcoin’s value over a few hours.
8.Celsius Withdrawal Freeze (June 13, 2022)
Celsius announced a freeze on withdrawals, citing extreme market conditions, leading to a significant reaction in Bitcoin’s price, which dropped from approximately $26,000 to below $22,000.
9.FTX Bankruptcy Crisis (Nov. 8-9, 2022)
Reports of FTX experiencing a liquidity issue led to a market panic, causing Bitcoin to drop over 17% within 24 hours, reaching as low as $15,600. FTX eventually filed for bankruptcy, sending shockwaves throughout the crypto sector.
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