"The great crash" of Bitcoin's price in 2013

The year 2013 was a pivotal one in the history of Bitcoin, marked by a significant event known as the “Great Crash” that occurred on April 11, 2013. This event is remembered as one of the most dramatic price drops in Bitcoin’s history.
 

In the early months of 2013, Bitcoin had been gaining traction and value. On April 1, 2013, Bitcoin crossed the $100 barrier for the first time. However, the joy was short-lived as panic selling soon ensued, leading to a rapid drop in price.
 

The “Great Crash” on April 11 was a result of this panic selling. The price of Bitcoin, which had been steadily climbing, suddenly plummeted. This drastic drop in price was a result of a variety of factors, including a sudden surge in Bitcoin’s popularity that the infrastructure at the time was not equipped to handle.
 

One of the main reasons for the crash was the failure of the then-largest Bitcoin exchange, Mt. Gox, to handle the increased trading volume. The exchange’s servers became overloaded, leading to lags in trade execution. This, in turn, led to panic among traders, causing a massive sell-off.
 

The crash was so severe that trading on Mt. Gox was halted for a period of time. When trading resumed, the price of Bitcoin had drastically fallen. This event served as a stark reminder of the volatility of the cryptocurrency market and the risks associated with it.