Today 15 years ago: June 19, 2011 was the biggest flash crash in the BTC history

[JaanusRaim]

In June 19, 2011 happened the biggest flash crash in the Bitcoin history. It is remarkable that neither before nor after that day have been similar incidences with Bitcoin: BTC price fell from $17 to $0.01 and bounced back in minutes.

Here is one video ("Bitcoin flash crash 2011" from Lark Davis)  https://br.tradingview.com/news/u_today%3A73be1a13a094b%3A0-bitcoin-crashed-from-17-to-0-01-14-years-ago-today/
Every single second of its 429 seconds is full of interesting facts/emotions. Look at the Bitcointalk threads created during these historical minutes !

One of the biggest lessons I got from this incident was how huge can be the value of money in the right time and place.

[tbct_mt2]

In June 19, 2011 happened the biggest flash crash in the Bitcoin history. It is remarkable that neither before nor after that day have been similar incidences with Bitcoin: BTC price fell from $17 to $0.01 and bounced back in minutes.

Here is one video ("Bitcoin flash crash 2011" from Lark Davis)  https://br.tradingview.com/news/u_today%3A73be1a13a094b%3A0-bitcoin-crashed-from-17-to-0-01-14-years-ago-today/
Every single second of its 429 seconds is full of interesting facts/emotions. Look at the Bitcointalk threads created during these historical minutes !

One of the biggest lessons I got from this incident was how huge can be the value of money in the right time and place.

I don't know it is a biggest crash ever in Bitcoin market history but I don't care about it and with me there is no need of verification this information at all. What I noticed is over time, Bitcoin and its market have grown and become both bigger and stronger, that's enough for its future as well as for a Bitcoin enthusiast and investor like me.

Bitcoin's historical corrections from all time highs.

[Alpha Marine]

This was caused by the Mt. Gox hack, which led to its crash. I didn't know Bitcoin then, but I have read about it a couple of times since I've been in Bitcoin.
This is a prime example of how Bitcoin is. It is very difficult for it to stay down forever. There will always be people who believe in it, and they don't believe in it simply because it's bitcoin, but because of what it offers. I can't tell you of any altcoin today that will crash from $17 to $0.1 and still come back up to beat its ATH, but Bitcoin did more than that in a worst-case scenario.

I don't know it is a biggest crash ever in Bitcoin market history but I don't care about it and with me there is no need of verification this information at all. What I noticed is over time, Bitcoin and its market have grown and become both bigger and stronger, that's enough for its future as well as for a Bitcoin enthusiast and investor like me.

I think you should. Not that it should discourage you from Bitcoin, but you would understand its history and know how far it has come. This would, in turn, strengthen your conviction of the coin.

From the video, you can hear whoever it is say, "Were the critics right?"
Things will happen where you would question whether Bitcoin is actually too big to fail. There is a small chance, but I won't be surprised if something happens that makes Bitcoin crash to $20k. At that point, your conviction would be tested, and if you don't fully understand its history, you might be shaken.

[FinneysTrueVision]

I know people like to make redundant threads around similar topics, but you are just recycling your own topic from 4 months ago. Doing this is considered spam. It is better to bump your old thread and come up with something new to add to the discussion, rather than paraphrasing your older post in a whole new thread.

Here is one video ("Bitcoin flash crash 2011" from Lark Davis)  https://br.tradingview.com/news/u_today%3A73be1a13a094b%3A0-bitcoin-crashed-from-17-to-0-01-14-years-ago-today/
, that has to be the part of every economic study (under the "Economic crisis" discipline) and investment course.

Every single second of its 429 seconds deserves full attention because history does rhyme. It needs no additional comments.

Its only imperfection is that THIS crash was not fully "natural" battle between demand and supply side but was "artificially" created by a hacker.

[Livingleged]

According  to the video the crash was probably  because  of the Max Got. Hack,  and the hacker was  withdrawing every bitcoin  on the exchanges  wallet. That was a big crash definitely  from $17 to $0.01, crazy indeed I don't think most of us that are into bitcoin now would experience  such and still hold or believe  it will bounce back and even possibly  take a new ATH. Bitcoin  has gain more adoption  and It volatility  has reduced  significantly  Therefore  having  this kind of fatal crash again  might be almost  impossible.

I wish I was already into bitcoin  when this happened, I don't know if I would actually take advantage  of the situation  at that time, I was still seating  in the class learning physics and Math's, although  I still believe  some coin might have a similar  crash and also bounce back too. I suspected  Solana about a similar  crash but it keeps proving  me wrong all the time.

[Pmalek]

Bitcoin was still relatively new and therefore pretty small back then. The market cap was nowhere close to what it is today. The infamous Mt. Gox exchange had a significant portion of that supply, so it was only natural that both the good and bad coming from that exchange would affect the value of Bitcoin. As the years went by and Bitcoin's market cap grew, negative news and hacks didn't cause such disastrous price drops. We can only hope (for everyone's sake) that the community never again experiences another Mt. Gox.

Thanks for taking us back in history. Even though it sucked.   

[JaanusRaim]

According  to the video the crash was probably  because  of the Max Got. Hack,  and the hacker was  withdrawing every bitcoin  on the exchanges  wallet. That was a big crash definitely  from $17 to $0.01, crazy indeed I don't think most of us that are into bitcoin now would experience  such and still hold or believe  it will bounce back and even possibly  take a new ATH. Bitcoin  has gain more adoption  and It volatility  has reduced  significantly  Therefore  having  this kind of fatal crash again  might be almost  impossible.

I wish I was already into bitcoin  when this happened, I don't know if I would actually take advantage  of the situation  at that time, I was still seating  in the class learning physics and Math's, although  I still believe  some coin might have a similar  crash and also bounce back too. I suspected  Solana about a similar  crash but it keeps proving  me wrong all the time.

Yes, Bitcoin is a real asset now and the probability of reoccurring such crash is very small. But in altcoins - as you said - it will be probable in some favourable conditions (for example during stock market crash).

[CryptoHeadlineNews]

This was caused by the Mt. Gox hack, which led to its crash. I didn't know Bitcoin then, but I have read about it a couple of times since I've been in Bitcoin.

Yes, you are actually right on what you just said above regarding this crash to have been caused as a result of Mt.Gox hack which took place in 2011. Which was caused as a result of an hacker having access to the exchange's administrative account and manipulated the price of Bitcoin, which caused a massive sell, resulting to the price of Bitcoin to fall from $17 to $0.1 back then in 2011. And we all know that Mt.Gox been one of the earliest and existing crypto exchange as of then, its influence actually had a strong effect on the price nature of Bitcoin back then. And sometimes, only those who might have bought Bitcoin during this fall and transfer it into their non custodial wallets will be very happy right now, and likewise this is another proof of the great potential Bitcoin hà at this moment.

[Majestic-milf]

I don't know it is a biggest crash ever in Bitcoin market history but I don't care about it and with me there is no need of verification this information at all. What I noticed is over time, Bitcoin and its market have grown and become both bigger and stronger, that's enough for its future as well as for a Bitcoin enthusiast and investor like me.

Bitcoin's historical corrections from all time highs.

It's good to know the history about such things so one can avoid making mistakes like that in the future.( Not like I'm saying you own an exchange or something  ) It's just that hacks like this can occur if one's security isn't the priority. Bitcoin has hit some lows and has gone back up, proving that it's way different from other digital currencies because it's not all that will take such a hit that would be able to survive.

[BlackHatCoiner]

I can't be the only one who's been into Bitcoin since so years and learned about this now. The price indeed crashed from $17 to $0.01 for a couple of minutes, and the guy recording it was panicking that the critics may have been correct.

That was 2011. Probably some whale turned lettuce hands and liquidated the entire market?

[DiMarxist]

In June 19, 2011 happened the biggest flash crash in the Bitcoin history. It is remarkable that neither before nor after that day have been similar incidences with Bitcoin: BTC price fell from $17 to $0.01 and bounced back in minutes.

Here is one video ("Bitcoin flash crash 2011" from Lark Davis)  https://br.tradingview.com/news/u_today%3A73be1a13a094b%3A0-bitcoin-crashed-from-17-to-0-01-14-years-ago-today/
Every single second of its 429 seconds is full of interesting facts/emotions. Look at the Bitcointalk threads created during these historical minutes !

One of the biggest lessons I got from this incident was how huge can be the value of money in the right time and place.

Am only trying to imagine the whole situation when this crash happened, because those were the early days of Bitcoin were getting acceptance was a problem. And so the price falling from $17 to $0.01 should have been one of the few moments when the investors confidence should have been tested. This crash will have further brought about different criticism from Bitcoin haters then when too much trust was not given to Bitcoin at the first place.

[salad daging]

Oohhh it turns out that bitcoin used to flash crash from a high price at the time to 1 cent, for me this is quite reasonable if in 2011 it happened because the liquidity of the bitcoin market at that time was still weak so that it could still be controlled by one entity to bring it down, even then what I read was related to the first hack of Mt.Gox around 25,000 BTC.

Now it is unlikely to happen again flash crash, the pope or any entity will not be able to collapse to low, now MC is big and bitcoin is growing rapidly, which means there will be no manipulation like before, according to Wikipedia Mt.gox at that time handled 70% more bitcoin transactions, this could be the work of hackers who sold at that time.

[lionheart78]

This was caused by the Mt. Gox hack, which led to its crash. I didn't know Bitcoin then, but I have read about it a couple of times since I've been in Bitcoin.
This is a prime example of how Bitcoin is. It is very difficult for it to stay down forever. There will always be people who believe in it, and they don't believe in it simply because it's bitcoin, but because of what it offers. I can't tell you of any altcoin today that will crash from $17 to $0.1 and still come back up to beat its ATH, but Bitcoin did more than that in a worst-case scenario.

Well each time there is an exchange hack, Bitcoin market always reacted negatively.  During the 2011 crash, it was really devastating, I read there are lots of people who lost funds and there are even rumors from social media, though not verified, that some investors even ended their lives due to fund losses caused by MT. GOX hack.

I don't know it is a biggest crash ever in Bitcoin market history but I don't care about it and with me there is no need of verification this information at all. What I noticed is over time, Bitcoin and its market have grown and become both bigger and stronger, that's enough for its future as well as for a Bitcoin enthusiast and investor like me.

This is just a piece of information.  I think it is still a good thing to know and verify this just for the record.

From the video, you can hear whoever it is say, "Were the critics right?"
Things will happen where you would question whether Bitcoin is actually too big to fail. There is a small chance, but I won't be surprised if something happens that makes Bitcoin crash to $20k. At that point, your conviction would be tested, and if you don't fully understand its history, you might be shaken.

Remember Titanic? Many people who boarded it thought that it is an unsinkable ship, but they were proven wrong.   I do not think that in this world there is anything that is too big to fail.  Everything has its own end, even the mightiest Dynasty crumbles and becomes a ruin.

Bitcoin is highly volatile even with its new investors and institutions coming in, it is still volatile, so seeing the market price crash is not news at all.  We have seen it coming, happening and we have seen Bitcoin recovering, surging and eventually recording a new ATH.  I think it will still follow that trend for the next cycles, but I also believe that eventually, Bitcoin will break away from its previous pattern. I just don't know when.

[r_victory]

Imagine being able to go back in time and buy bitcoins for $0.01 

In 2011, although I had heard of bitcoins and cryptocurrencies, access to them wasn't easy and little was known about the subject, at least in my opinion. I believe that all the cryptocurrencies we know today went through something similar.

[Hamza2424]

In June 19, 2011 happened the biggest flash crash in the Bitcoin history. It is remarkable that neither before nor after that day have been similar incidences with Bitcoin: BTC price fell from $17 to $0.01 and bounced back in minutes.

Here is one video ("Bitcoin flash crash 2011" from Lark Davis)  https://br.tradingview.com/news/u_today%3A73be1a13a094b%3A0-bitcoin-crashed-from-17-to-0-01-14-years-ago-today/
Every single second of its 429 seconds is full of interesting facts/emotions. Look at the Bitcointalk threads created during these historical minutes !

One of the biggest lessons I got from this incident was how huge can be the value of money in the right time and place.

This is a really remarkable historic event that you have shared bro. I was not aware of this low it made that day, as a $100 buy could make us billionaires according to the data, but in the current world, if it drops like that, not to $0.1, but from $17 to $0.1, it means it dropped by 99.41%, so if such a drop occurs today, we might not be able to buy it for $100 even because of a liquidity shortage, but there should be some demand left.

If it drops by 99% my life will not be affected by it because of my invested amount and my risk management and that's why I will do my best to buy it if it drops like that again haha. Although there is no chance for it to drop like this.

It just feels so awesome to hear where we have come from, the days of darkness where it went that low and then recovered in minutes and now we have billions in it, no, trillions.

[AmoreJaz]

Imagine being able to go back in time and buy bitcoins for $0.01  

In 2011, although I had heard of bitcoins and cryptocurrencies, access to them wasn't easy and little was known about the subject, at least in my opinion. I believe that all the cryptocurrencies we know today went through something similar.

And besides, most people back then thought that this was more of like a play money where you didn't need to be serious about. More than likely, even Satoshi himself was not expecting that btc will have this value in the market and can go mainstream like what we have today. Even just more than a decade of existence and it is already fetching quite good amount of money.

Who would have thought that btc will become the market that we have today, right? If I only knew that this will fetch this amount, I would have not sold my btcs back then. So that I can say, would be the same sentiments for most of us. I sold a lot of mine when it was just 300bucks and look at what we have now. So yeah, many of us didn't see this price coming. But it doesn't mean, you need to stop from getting involved in this market because of such experience. Use it to increase your portfolio in crypto and use the learnings to strategize and earn more from this market. It is never too late and regrets should not have a place here.

[taufik123]

Bitcoin was still relatively new and therefore pretty small back then. The market cap was nowhere close to what it is today. The infamous Mt. Gox exchange had a significant portion of that supply, so it was only natural that both the good and bad coming from that exchange would affect the value of Bitcoin. As the years went by and Bitcoin's market cap grew, negative news and hacks didn't cause such disastrous price drops. We can only hope (for everyone's sake) that the community never again experiences another Mt. Gox.

Thanks for taking us back in history. Even though it sucked.  

Yes, most of it is held by the Mt. Gox Exchange and also Mt. Gox lost a total of 850,000 BTC due to a series of hacks that occurred until early 2014.
The figure consists of 740,000 BTC belonging to customers and about 100,000 BTC belonging to the company itself.

A few years after the June 19, 2011 flash crash occurred, the trading volume in 2011 was only around $30k
with the price of Bitcoin at the time hovering around $17 and this price continued to fall until the end of 2011.


https://www.statmuse.com/money/ask/bitcoin-price-history-june-2011


https://charts.bitbo.io/price/2011

Bitcoin has gone through many declining events that are quite extreme because of some negative news, hacking has always happened to this day,
not the Bitcoin that has been hacked but the place where Bitcoin is like the top exchange Mt.Gox which has also been hacked as I have told you above,
But the community has never given up and Bitcoin can still survive to this day and continue to rise to reach ATH which is impossible to think about but then it happens.
this is the history of Bitcoin that will never be forgotten.

[Fivestar4everMVP]

In June 19, 2011 happened the biggest flash crash in the Bitcoin history. It is remarkable that neither before nor after that day have been similar incidences with Bitcoin: BTC price fell from $17 to $0.01 and bounced back in minutes.

Here is one video ("Bitcoin flash crash 2011" from Lark Davis)  https://br.tradingview.com/news/u_today%3A73be1a13a094b%3A0-bitcoin-crashed-from-17-to-0-01-14-years-ago-today/
Every single second of its 429 seconds is full of interesting facts/emotions. Look at the Bitcointalk threads created during these historical minutes !

One of the biggest lessons I got from this incident was how huge can be the value of money in the right time and place.

Well, thanks very much for sharing this information, this is actually my first time coming across an information like this, goes to she that no man is truly an island of knowledge, I have taken my time in the past to study the past history of bitcoin but didn't come across this part.

Bitcoin has so many interesting history and this is one of those for me, a crash from $17 to $0.01 is very significant, this is as good as saying that the price of bitcoin fell from $17 to $0, I guess it was as a result of someone with a really large number of bitcoin dumping everything on the market all at once, coupled with the fact that there was limited liquidity for large bitcoin sales back then..
But in all, it feels great to see where bitcoin is today and how much it's worth, who would think that something worth tens of thousands of dollars today, and once worth a hundred thousand plus dollars, was once worth $0.01, how bless are those who came across bitcoin that time.

[ColdLava40]

In June 19, 2011 happened the biggest flash crash in the Bitcoin history. It is remarkable that neither before nor after that day have been similar incidences with Bitcoin: BTC price fell from $17 to $0.01 and bounced back in minutes.

I've come across this before and it was an Interesting read.but that's a long time ago and it might not be considered as the biggest crash anymore.

This shows how strong bitcoins bounces back after every major set back. Right from time, it's price has always been Influenced by fundamentals which is a major economic tool for all assets.

If it drops by 99% my life will not be affected by it because of my invested amount and my risk management and that's why I will do my best to buy it if it drops like that again haha. Although there is no chance for it to drop like this..

We don't hope to see Bitcoin get to such level. If it happens a lot of investors would not hesitate to sell of what's left. They won't be willing to buy back out of fear Because the only thing that would be on their mind is how sure are they that it would bounce back.

[Alphakilo]

Bitcoin was still relatively new and therefore pretty small back then. The market cap was nowhere close to what it is today. The infamous Mt. Gox exchange had a significant portion of that supply, so it was only natural that both the good and bad coming from that exchange would affect the value of Bitcoin. As the years went by and Bitcoin's market cap grew, negative news and hacks didn't cause such disastrous price drops. We can only hope (for everyone's sake) that the community never again experiences another Mt. Gox.

Thanks for taking us back in history. Even though it sucked.  

Yes, most of it is held by the Mt. Gox Exchange and also Mt. Gox lost a total of 850,000 BTC due to a series of hacks that occurred until early 2014.
The figure consists of 740,000 BTC belonging to customers and about 100,000 BTC belonging to the company itself.

A few years after the June 19, 2011 flash crash occurred, the trading volume in 2011 was only around $30k
with the price of Bitcoin at the time hovering around $17 and this price continued to fall until the end of 2011.


https://www.statmuse.com/money/ask/bitcoin-price-history-june-2011


https://charts.bitbo.io/price/2011

Bitcoin has gone through many declining events that are quite extreme because of some negative news, hacking has always happened to this day,
not the Bitcoin that has been hacked but the place where Bitcoin is like the top exchange Mt.Gox which has also been hacked as I have told you above,
But the community has never given up and Bitcoin can still survive to this day and continue to rise to reach ATH which is impossible to think about but then it happens.
this is the history of Bitcoin that will never be forgotten.

I remember this story back then and I think only about 200k worth of Bitcoin was recovered if am accurate enough.

Today, it would be hard for such an incident to repeat itself because the Bitcoin systems has grown to include more markets across many exchanges, perpetual markets, ETFs and institutional OTC desks.
There are automation bots deployed as circuit breakers to prevent a recurrence of this even within the shortest time frame and so much is being done after that hard lesson.

If such incident never happened, am sure Bitcoin and crypto currencies wouldn't have become stronger and have even grown to become acceptable in different levels up to countries having reserve Bitcoin banks just to acknowledge its worth and value.