Bitcoin’s BTC/USD volatile ride from $1,000 in January 2017 to its peak of $20,000 by the end of that year was followed by a sharp drop, losing more than 60% of its value in just a few months.
What Happened: The year 2018 was referred to by some as a “crypto winter,” as the value of Bitcoin continued to shrink, eventually bottoming out at around $3,200 in December that year.
The market downturn began with a security issue at Coincheck, a Japanese cryptocurrency exchange.
In January 2018, Coincheck suffered a massive hack that resulted in the loss of about $530 million worth of NEM (XEM) cryptocurrency.
As the year went on, big tech companies like Facebook and Google furthered the bear market by banning ads for initial coin offerings and token sales on their platforms.
Global crypto regulations also contributed to the decline, with the Securities and Exchange Commission (SEC) rejecting applications for BTC exchange-traded funds.
See More: Top Indian Apps That Give Bitcoin, NFT Rewards
Why It Matters: Despite the ups and downs, those who invested $100 in Bitcoin when it was trading at $3,236 on Dec. 15, 2018, would have seen a lucrative return on their investment.
With Bitcoin at a current value of $29,174, that initial $100 investment would be worth $901, representing a profit of 801%.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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