Close Menu
Crypto Junction
  • Crypto News
    • News
    • Bitcoin
    • Blockchain
    • BNB
    • Dogecoin
    • Ethereum
    • Litecoin
    • Meme Coins
    • Solana
    • Toncoin
    • XRP
  • Business
  • Markets
  • Regulation
  • Guides
  • Press Release
What's Hot

True Announces $TRUE Token Sale to Build the First AI-Native Perpetuals DEX on Solana

September 4, 2025

Tech Giant Google’s Universal Blockchain Ledger Goes Live

September 2, 2025

Nvidia Q2 Earnings Exceed Estimates: Blackwell Powers Market Gains

September 2, 2025
Facebook X (Twitter) Instagram
  • Altcoin News
  • Bitcoin News
  • Dogecoin News
  • Ethereum News
  • Litecoin News
  • Meme Coin News
  • Solana News
  • XRP News
X (Twitter) Telegram
Crypto JunctionCrypto Junction
  • Crypto News
    • News
    • Bitcoin
    • Blockchain
    • BNB
    • Dogecoin
    • Ethereum
    • Litecoin
    • Meme Coins
    • Solana
    • Toncoin
    • XRP
  • Business
  • Markets
  • Regulation
  • Guides
  • Press Release
Crypto Junction
Home » The Rise and Fall of Bitcoin: What Caused the Crypto Crash & Is There Hope for Recovery?
Bitcoin

The Rise and Fall of Bitcoin: What Caused the Crypto Crash & Is There Hope for Recovery?

Karly MarieBy Karly MarieDecember 21, 2018Updated:March 9, 2025No Comments4 Mins Read
Share Facebook Twitter Pinterest Reddit Telegram Email Bluesky Copy Link
Share
Twitter Facebook Telegram Bluesky Pinterest Email Reddit Copy Link

The Bitcoin Boom and the Brutal Bust

Facebook’s plans to introduce a digital coin in 2018 came at a time when both cryptocurrencies and the tech giant itself were under scrutiny. Bitcoin, once the darling of digital investors, had reached a peak of nearly $20,000 by late 2017—only to tumble below $3,000 by year’s end.

What caused this dramatic collapse? And more importantly, can cryptocurrencies recover from this crisis? To understand the situation, we must examine the key factors behind the downfall.

The Bitcoin Bubble: A FOMO-Driven Frenzy

During Bitcoin’s meteoric rise, it seemed like everyone—from seasoned investors to casual enthusiasts—was jumping on the bandwagon. The fear of missing out (FOMO) fueled an unsustainable surge, with many people investing not based on Bitcoin’s intrinsic value but on sheer speculation.

Hedge fund manager Mark Dow recognized the signs of a classic bubble. A year before the crash, he bet against Bitcoin, predicting that the market’s feverish excitement had no fundamental backing. His instincts proved right—when the bubble burst, the mass panic to sell accelerated the decline.

Warning Signs Before the Crash

Bitcoin’s vulnerabilities had been exposed long before 2018. The cryptocurrency world had already suffered major security breaches, raising concerns about its safety:

  • Mt. Gox Hack (2014): The exchange lost $473 million to hackers, shaking early investor confidence.
  • DAO Hack (2016): A flaw in Ethereum’s blockchain led to a $50 million loss, normalizing the idea that crypto exchanges were frequent targets.
  • Coincheck Breach (2018): A massive $534 million hack rattled the industry, coinciding with Bitcoin’s price decline.

These security lapses not only scared away potential investors but also prompted governments in Asia—particularly China, Japan, and South Korea—to tighten regulations. With increasing restrictions, Bitcoin’s growth was severely hampered.

The Institutional Cold Shoulder

For Bitcoin to maintain its surge, it needed validation from major financial institutions. Instead, many Wall Street titans dismissed it outright:

  • JPMorgan CEO Jamie Dimon: “I don’t really give a shit about Bitcoin.”
  • Warren Buffett: Called Bitcoin “probably rat poison squared.”

Such statements discouraged traditional investors from entering the crypto space. Furthermore, the U.S. Securities and Exchange Commission (SEC) refused to approve a Bitcoin exchange-traded fund (ETF), preventing mainstream financial integration.

There were also allegations of market manipulation. Some analysts believe Bitcoin’s initial price surge was driven by artificial inflation linked to the Tether stablecoin, drawing scrutiny from the U.S. Justice Department.

Internal Conflicts and Blockchain Battles

Beyond external pressures, the cryptocurrency industry suffered from internal fragmentation. Disputes over the direction of blockchain technology led to hard forks—splitting existing networks into rival factions:

  • Ethereum (2016): A divide over the DAO hack resulted in the split into Ethereum and Ethereum Classic.
  • Bitcoin Cash (2018): A feud within the Bitcoin Cash community created two warring factions, causing further market instability.

These internal battles undermined trust in cryptocurrencies, reinforcing the idea that digital assets were volatile and unpredictable.

Can Bitcoin Recover?

Bitcoin’s dramatic fall has left many questioning its future. However, experts believe the blockchain technology behind it remains valuable. Mark Dow, who had shorted Bitcoin before its crash, has now closed his position, signaling that the worst may be over.

Michael J. Casey of MIT’s Digital Currency Initiative suggests that this “crypto winter” may lead to a stronger, more sustainable ecosystem. Industry leaders acknowledge that a retooling is necessary to regain trust and legitimacy.

Stephen Innes, a seasoned financial analyst, remains cautiously optimistic:

“This is a legitimate technology—it’s going to expand. My longer-term view is nowhere near as pessimistic as my short-term outlook.”

Bitcoin may yet rise again—but this time, its success will depend on technological advancements, regulatory clarity, and real-world applications rather than pure hype. Until then, the world watches and waits.

Bitcoin Blockchain Crypto Regulation Cryptocurrency Digital Currency Ethereum
Share. Twitter Facebook Telegram Email Bluesky Reddit Copy Link
Previous ArticleBitcoin Cash Hash War: ABC vs. SV, Who Won, What’s Next?
Next Article From Crypto Ban to Stablecoin: How Facebook’s Stance on Cryptocurrency Evolved in 2018
Karly Marie
Karly Marie

Related Posts

Press Release

True Announces $TRUE Token Sale to Build the First AI-Native Perpetuals DEX on Solana

September 4, 2025
Blockchain

Tech Giant Google’s Universal Blockchain Ledger Goes Live

September 2, 2025
Crypto

Crypto Retirement Funds Beckon As Young Brits Cash Out

September 2, 2025
Add A Comment

Comments are closed.

Trending Posts
Dogecoin

DOGE Price Rises After ETF Filing

May 17, 2025
Crypto

Ark Invest Buys $11.5M in Coinbase Stock After 17% Crash Amid Market Turmoil

March 13, 2025
Regulation

Stablecoin Regulation GENIUS Act Passes in U.S. House

July 26, 2025

Subscribe to Updates

Get the latest sports news from SportsSite about soccer, football and tennis.

Crypto Junction, founded in 2014, is one of the original and most trusted sources for cryptocurrency news and blockchain insights. We provide accurate, unbiased, and timely coverage of digital assets, market trends, and industry developments.

All content on Crypto Junction is for informational and educational purposes only and should not be considered financial, investment, or legal advice. Cryptocurrency investments are highly volatile and carry risks. Always conduct your own research before making financial decisions.

We're social. Connect with us:

X (Twitter) Telegram
Top Insights

True Announces $TRUE Token Sale to Build the First AI-Native Perpetuals DEX on Solana

September 4, 2025

Tech Giant Google’s Universal Blockchain Ledger Goes Live

September 2, 2025

Nvidia Q2 Earnings Exceed Estimates: Blackwell Powers Market Gains

September 2, 2025
ABOUT
  • About Us
  • Cookie Policy
  • Editorial Policy
  • Investment Disclaimer
  • Press and Media Kit
  • Terms of Service
  • Affiliate Disclosure
  • Contact Us
  • Crypto Marketing
  • Daily Digest News
Telegram X (Twitter)
  • Altcoin News
  • Bitcoin News
  • Dogecoin News
  • Ethereum News
  • Litecoin News
  • Meme Coin News
  • Solana News
  • XRP News
© 2025 Crypto Junction

Type above and press Enter to search. Press Esc to cancel.

bitcoin
Bitcoin (BTC) $ 110,853.70
ethereum
Ethereum (ETH) $ 4,316.21
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 2.82
bnb
BNB (BNB) $ 851.17
solana
Solana (SOL) $ 204.43
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 4,308.88
dogecoin
Dogecoin (DOGE) $ 0.218398
tron
TRON (TRX) $ 0.331226
cardano
Cardano (ADA) $ 0.833811
wrapped-steth
Wrapped stETH (WSTETH) $ 5,226.75
chainlink
Chainlink (LINK) $ 22.41
wrapped-beacon-eth
Wrapped Beacon ETH (WBETH) $ 4,647.35
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 110,879.71
hyperliquid
Hyperliquid (HYPE) $ 47.22
ethena-usde
Ethena USDe (USDE) $ 1.00
figure-heloc
Figure Heloc (FIGR_HELOC) $ 1.02
bitcoin-cash
Bitcoin Cash (BCH) $ 607.56
sui
Sui (SUI) $ 3.39
wrapped-eeth
Wrapped eETH (WEETH) $ 4,632.85
stellar
Stellar (XLM) $ 0.359807
avalanche-2
Avalanche (AVAX) $ 24.42
weth
WETH (WETH) $ 4,317.53
hedera-hashgraph
Hedera (HBAR) $ 0.219113
crypto-com-chain
Cronos (CRO) $ 0.268976
leo-token
LEO Token (LEO) $ 9.53
litecoin
Litecoin (LTC) $ 112.38
usds
USDS (USDS) $ 1.00
the-open-network
Toncoin (TON) $ 3.09
shiba-inu
Shiba Inu (SHIB) $ 0.000012
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00
whitebit
WhiteBIT Coin (WBT) $ 42.48
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 110,899.71
polkadot
Polkadot (DOT) $ 3.83
ethena-staked-usde
Ethena Staked USDe (SUSDE) $ 1.20
uniswap
Uniswap (UNI) $ 9.45
ethena
Ethena (ENA) $ 0.731871
monero
Monero (XMR) $ 269.98
world-liberty-financial
World Liberty Financial (WLFI) $ 0.179438
aave
Aave (AAVE) $ 303.82
dai
Dai (DAI) $ 1.00
bitget-token
Bitget Token (BGB) $ 4.81
pepe
Pepe (PEPE) $ 0.00001
mantle
Mantle (MNT) $ 1.17
okb
OKB (OKB) $ 182.19
ethereum-classic
Ethereum Classic (ETC) $ 20.42
bittensor
Bittensor (TAO) $ 319.71
jito-staked-sol
Jito Staked SOL (JITOSOL) $ 250.88
near
NEAR Protocol (NEAR) $ 2.40
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.28073
aptos
Aptos (APT) $ 4.26
ondo-finance
Ondo (ONDO) $ 0.914107
usdt0
USDT0 (USDT0) $ 1.00
pi-network
Pi Network (PI) $ 0.344875
memecore
MemeCore (M) $ 1.58
arbitrum
Arbitrum (ARB) $ 0.496326
usd1-wlfi
USD1 (USD1) $ 0.999308
binance-peg-weth
Binance-Peg WETH (WETH) $ 4,318.27
internet-computer
Internet Computer (ICP) $ 4.78
story-2
Story (IP) $ 8.08
binance-staked-sol
Binance Staked SOL (BNSOL) $ 219.19
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00
kaspa
Kaspa (KAS) $ 0.080754
cosmos
Cosmos Hub (ATOM) $ 4.45
susds
sUSDS (SUSDS) $ 1.07
vechain
VeChain (VET) $ 0.023711
jupiter-perpetuals-liquidity-provider-token
Jupiter Perpetuals Liquidity Provider Token (JLP) $ 5.42
algorand
Algorand (ALGO) $ 0.231109
gatechain-token
Gate (GT) $ 16.87
rocket-pool-eth
Rocket Pool ETH (RETH) $ 4,915.65
fasttoken
Fasttoken (FTN) $ 4.50
pudgy-penguins
Pudgy Penguins (PENGU) $ 0.029328
kucoin-shares
KuCoin (KCS) $ 14.45
worldcoin-wld
Worldcoin (WLD) $ 0.91124
kinetic-staked-hype
Kinetiq Staked HYPE (KHYPE) $ 47.39
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 4,536.93
render-token
Render (RENDER) $ 3.47
sei-network
Sei (SEI) $ 0.293122
sky
Sky (SKY) $ 0.073711
bfusd
BFUSD (BFUSD) $ 0.999655
official-trump
Official Trump (TRUMP) $ 8.36
pump-fun
Pump.fun (PUMP) $ 0.004673
falcon-finance
Falcon USD (USDF) $ 0.999754
stakewise-v3-oseth
StakeWise Staked ETH (OSETH) $ 4,539.70
filecoin
Filecoin (FIL) $ 2.35
usdtb
USDtb (USDTB) $ 0.999702
fetch-ai
Artificial Superintelligence Alliance (FET) $ 0.612139
bonk
Bonk (BONK) $ 0.00002
liquid-staked-ethereum
Liquid Staked ETH (LSETH) $ 4,664.25
jupiter-exchange-solana
Jupiter (JUP) $ 0.499021
flare-networks
Flare (FLR) $ 0.020932
lombard-staked-btc
Lombard Staked BTC (LBTC) $ 111,147.78
polygon-bridged-usdt-polygon
Polygon Bridged USDT (Polygon) (USDT) $ 1.00
xdce-crowd-sale
XDC Network (XDC) $ 0.080319
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 4,563.36
four
Four (FORM) $ 3.67
hash-2
Provenance Blockchain (HASH) $ 0.027796
tether-gold
Tether Gold (XAUT) $ 3,591.88
optimism
Optimism (OP) $ 0.723657