What impact will the Bitcoin crash have? Count the Bitcoin crash in those years
- By bitcoincasts
- December 07, 2022
Bitcoin rises and falls sharply, and will collapse at any moment. Those who have no tolerance can't afford to play. Investors are most afraid of a crash. Once the crash occurs, they do not know whether to copy the bottom or escape. So, what impact will the Bitcoin crash bring? Next, let's have a look.
What impact will the Bitcoin crash have?
Fundamentally, the impact of the collapse of digital credit currency is mainly concentrated in three aspects, one is that it caused heavy losses to investors, the other is that it caused turbulence in the digital financial market, and the third is that it will have a certain impact on the blockchain concept stocks. It can be said that the collapse of digital currency lending can bring great impact to the currency market and blockchain concept industry.
1、 Cause heavy losses to investors
The heavy losses caused to investors can be considered as the most direct impact of the collapse of the digital currency. This is because the price of digital currency is closely related to the wealth of investors. Therefore, when the price of digital currency falls, the wealth of these investors will also face shrinking. It can be said that these investors will be the first to face the impact of the collapse of the digital credit currency, which will bring a large loss to their wealth.
2、 Cause turbulence in the digital financial market
The leading products in the digital currency market have always been the directional indicators in the digital currency market. Their every move will have a certain impact on other digital currencies, and also reflect the currency market to a certain extent. In this case, the sharp drop of the head product quotation will naturally cause the turbulence of the digital financial market, causing other digital currencies to fall even further together, and even the investors may panic to sell the digital currency.
3、 It will have a certain impact on blockchain concept stocks
Digital currency is closely related to the blockchain concept, so the collapse of digital currency is not a good news for the blockchain concept industry. Therefore, in this regard, the collapse of digital currency will seriously affect investors' confidence in the blockchain concept industry, leading to a decline in the stock price of the blockchain concept. Of course, there are still some differences between the concept of digital credit currency and blockchain, so the impact in this regard will not be great and the duration will not be too long.
Count the Bitcoin crash in those years
The first collapse
The first Bitcoin crash occurred between 2011 and 2012. From April to June 2011, Bitcoin rose from US $0.95 to about US $32. After that, the rise stopped and began to fall all the way. By 2012, the price of Bitcoin was only US $2, with the largest drop of 94%.
Reason: Selling may be the main reason for the collapse of Bitcoin. At that time, there were few people who believed in Bitcoin, and the trading depth was insufficient, which led to large fluctuations.
The second crash of Bitcoin was in April 2013. The price of Bitcoin rose from $13 to about $260 in four months. However, the price of Bitcoin fell to about $40 in less than a week, down 80%.
Reason: The reason for the sharp decline was that a small bug was generated in an update of Bitcoin mining software, which caused the largest exchange at that time, Mt Gox temporarily stopped the cash withdrawal business of Bitcoin, causing panic among investors. As a result, Bitcoin was sold on a large scale, and the price of Bitcoin fell in a waterfall within a few days.
The third collapse
The second collapse of Bitcoin was at the end of 2013, when the price of Bitcoin began to fall from as high as $1200 to below $150 at the beginning of 2015, down more than 85%.
Reason: The high price of Bitcoin has gradually attracted the attention of the public, and there is no shortage of investors in China. The domestic government is also gradually facing Bitcoin. At the end of 2013, the Central Bank and other five ministries and commissions released the Notice on Preventing Bitcoin Risks. As soon as the news came out on that day, bitcoin was cut from $1200 to $600, and 50% of it evaporated in a day! In 2014, Bitcoin was in the midst of an endless bear market decline. Until the beginning of 2015, the price of Bitcoin finally stopped falling, which was the longest decline so far.
The fourth collapse
The fourth collapse of Bitcoin occurred at the end of 2017. The price of Bitcoin plummeted from $20000 to $3200 at the end of 2018, down about 85%.
The impact of the collapse of digital credit currency has three key aspects. First, it will cause heavy losses to investors, second, it will cause turbulence in the digital financial market, and third, it will have a certain impact on the blockchain concept stocks. But for the whole society, the overall impact is not great.
Speaking of this, I believe you have a certain understanding of the impact of the Bitcoin crash and the Bitcoin crash in those years. In general, Xiaobian also reminds investors that the currency circle market is volatile and unpredictable, and there are certain risks. You must consider clearly before entering the market, and do not invest blindly.