Following the massive bull run of 2017, 2018 was characterized by a prolonged and severe market correction, often referred to as the “crypto winter.” 

Bitcoin’s price fell dramatically throughout the year, losing over 70% of its value from its peak, and ended the year trading around $3,700. This sharp decline was attributed to the bursting of the speculative bubble, increased regulatory scrutiny worldwide, and several high-profile exchange hacks. 

Despite the price crash, development in the Bitcoin ecosystem continued, with progress on the Lightning Network (a Layer 2 scaling solution) and ongoing discussions about the future of the technology. 

Major financial institutions continued to explore cryptocurrencies and blockchain technology, albeit with more caution.

Bitcoin Milestones in 2018

• January: Prices began a steep decline from the December 2017 highs. Major exchange Coincheck (Japan) was hacked for a massive amount of NEM, affecting overall crypto sentiment.
• March: Google, Facebook, and Twitter banned cryptocurrency-related advertising, citing concerns over scams.
• Throughout the year: A significant bear market, with Bitcoin’s price dropping from nearly $20,000 to below $4,000. Regulatory bodies globally increased their focus on the crypto industry, with varied approaches.
• November: Bitcoin Cash experienced its own contentious hard fork, leading to Bitcoin SV.