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RECOVERED
DEC 2017 - DEC 2018

Bitcoin Drawdown 2017–2020

The infamous "Crypto Winter". Bitcoin crashed from $19,800 to $3,200 — an -84% drawdown. The recovery took 730 days (2 years), making it the longest bear market in Bitcoin's history.

Max Drawdown

-84%

Peak→Bottom

365 days

Recovery Time uppercase text-green-

730 days

Cycle Visualization

0%-25%-50%-75%-100%
3.0 yrs
2017
-84%
2013
2017
2021
2025

What Happened

December 2017 - The Mania Peak

Bitcoin hits $19,800 on Coinbase. Everyone's talking about Bitcoin. Mainstream media declares it a bubble. Futures contracts launch on CME.

February 2018 - The Crash Begins

Crash to $6,000. "This is the bottom" — repeated many times. It wasn't. South Korea bans crypto trading. Regulatory FUD dominates.

December 2018 - The Bottom

Complete capitulation. Bitcoin bottoms at $3,200. "Bitcoin is dead" articles flood Google. Mining hash rate drops significantly.

2019 - The Long Grind

Price hovers between $3K-$13K. No clear direction. Many gave up. Facebook's Libra announcement sparked some interest in late 2019.

December 2020 - Recovery Complete

Bitcoin breaks $19,800. Cycle recovered!Total time: 1,095 days (3 years).

📊 Key Statistics

Max Drawdown-84%
Peak DateDec 17, 2017
Bottom DateDec 15, 2018
Bottom Price$3,150
Time to Bottom365 days
Time to Recovery730 days
Recovery DateDec 16, 2020
Total Cycle1,095 days

❄️ Why Recovery Took So Long (730 days)

  • No institutional products — No ETFs, no futures liquidity issues
  • Regulatory crackdown — China bans mining, SEC hostile
  • Retail had given up — "Crypto is dead" narrative prevailed
  • No clear macro catalyst — Unlike 2024 ETF approval

🚀 What Changed in 2020?

  • COVID Crash + Recovery — Macro stimulus boosted risk assets
  • PayPal adopted Bitcoin — Mainstream adoption milestone
  • MicroStrategy buys BTC — Corporate treasury strategy begins
  • DeFi summer — Innovation brought users back

🎓 Key Lessons From This Cycle

What Went Wrong

  • • Selling at $3K-$4K was a mistake (in hindsight)
  • • "Dead" narrative was wrong — Bitcoin recovered 6x+
  • • Long bear markets test your conviction

What Went Right

  • • Patient holders were massively rewarded
  • • Buying at $3K-$6K = 6-12x returns by 2021
  • • Cycle repeated as promised

Other Cycle Analyses