TL;DR
- The most severe crypto market correction remains that of March 2020, with a 39.6% drop in a single day, reducing the market capitalization to $135.14 billion.
- In 2024, the largest decline has been 8.4% on March 20, and the recent August correction has not been significant enough to qualify as a correction.
- Historically, the longest corrections have lasted up to two consecutive days, with 2023 seeing no corrections and 2024 witnessing two days of correction for Ethereum.
The crypto market correction triggered by the COVID-19 pandemic remains the most severe, with a 39.6% drop recorded on March 13, 2020. This event caused a drastic decrease in the total crypto market capitalization, which fell from $223.74 billion to $135.14 billion in just one day.
With these values in mind and in contrast to the present, the largest crypto market decline in 2024 has been significantly less severe, reaching only 8.4% on March 20. Although the recent correction, which extended from August 2 to August 6, 2024, resulted in a decrease in capitalization from $2.44 trillion to $1.99 trillion, it has not been substantial enough to qualify as a correction.
The ‘Crisis’ in the Market Is Far from Being a Correction
In the analyzed period, March 13, 2020, not only marked the largest correction in general but also the largest price drop for Bitcoin, which fell by 35.2%. Ethereum, in turn, experienced its second-largest price correction with a 43.1% drop on the same day. The second most notable correction event in recent history occurred on September 14, 2017, with a 22.3% drop in total crypto market capitalization.
Historically, the longest crypto market corrections have lasted up to two consecutive days. Examples of this include corrections in January and February 2018, and November 2022. In 2018, there were 18 correction days, the highest number in a single year. In contrast, 2023 saw no correction days, and in 2024, Ethereum has already experienced two correction days.
Price corrections for Bitcoin and Ethereum have shown clear volatility over the years. For instance, Bitcoin suffered a 35.19% drop on March 13, 2020, while Ethereum saw a 53.00% drop on August 8, 2015.
