If you are wondering can bitcoin crash, there is a lot of information to consider. In its early days, bitcoin prices were extremely volatile. While the market for bitcoin was global, it was a thinly traded asset, as it didn't have a deep market to rely on for liquidity.

When a market has a relatively small number of participants, and low liquidity, wild price swings are inevitable. Bitcoin prices crashed more than once on their way to all time highs that were set in late 2017. After this historic rally, prices fell by at least 70%, which easily qualifies as a severe bear market.

Although the fundamentals in the bitcoin market have changed since 2017, there is nothing stopping bitcoin from selling off on a big way. Unlike established financial markets, the crypto market has no buyer of last resort. Without a guaranteed bid, there is no lower limit to how far prices can fall.

In simple terms, bitcoin prices can crash, and may again. Every bitcoin price crash up to this point has been a buying opportunity, which could be worth keeping in mind if it ever happens again. While there is no guarantee of higher prices ahead, history shows that bitcoin always comes back stronger.