Answer · confidence: partial
After bitcoin hit $64,800 in April 2021, what happened next, and what news came?
Research question: After bitcoin's April 2021 high of $64,800, what happened to its price over the following year, and what news coincided with the drop?
The records show bitcoin had fallen to $34,763.47 by the end of the second quarter of 2021 15, then partly recovered to $43,534.56 by September 30, 2021 15. It declined again during the first half of 2022 1. News coinciding with the early drop included Elon Musk's May 2021 announcement that Tesla would no longer accept bitcoin, after which the price fell about 12% 69, and China's May 21, 2021 call to crack down on bitcoin mining and trading 4. Later, the Terra-Luna collapse in May 2022 damaged confidence and accelerated a 'crypto winter' 8, and FTX's bankruptcy on November 11, 2022 followed 1014. The facts do not give the price one year after April 2021 or the 2022 low, so the answer is incomplete; the newest fact dates to November 2022, nearly four years before October 2026 14.
Checked 2026-10-21. Only documented and supported facts are used.
Dig deeper on this questionSources
[1] documented
Bitfarms said the bitcoin price declined during the first half of 2022, which prompted it to evaluate the recoverable amount of its Washington state mining assets as of June 30, 2022.
"As a result of the decline in the BTC price during the six months ended June 30, 2022, the Company performed an evaluation of the recoverable amount of the property, plant and equipment and intangible assets for the Washington state cryptocurrency mining facility as at June 30, 2022."6-K Bitfarms Ltd (BITF) (CIK 0001812477) 2022-11-14
[2] supported
Starting in late May 2021, Inner Mongolia, Xinjiang, Qinghai and Sichuan issued policies to fully clear out and shut down crypto mining, and Sichuan's bitcoin mining farms had their power cut.
"2021年五月底开始，内蒙古、新疆、青海、四川相继出台政策，全面清理和关停虚拟货币挖矿业务。其中四川的比特幣礦場遭到斷電"比特币在各国或地区的合法性
[3] supported
Bitfarms recorded a $17,900 thousand goodwill impairment on its Washington state mining unit because of the lower bitcoin price.
"Based on its calculation, the Company recorded an impairment loss on its Washington state cryptocurrency mining CGU resulting in an impairment charge to goodwill of $17,900 during the three and six months ended June 30, 2022."6-K Bitfarms Ltd (BITF) (CIK 0001812477) 2022-11-14
[4] supported
On May 21, 2021, China's State Council Financial Stability and Development Committee called for cracking down on bitcoin mining and trading.
"2021年5月21日晚间，国务院金融稳定发展委员会召开第五十一次会议，会议提出三点大要求，其中很重要的一点是：打击比特币挖矿和交易行为。"比特币在各国或地区的合法性
[5] documented
Bitfarms cited the decline in the BTC price as the reason its remaining Antminer S9 miners, classified as held for sale in 2021, were not sold within 12 months and were written off.
"The remaining Antminer S9 miners were not sold within 12 months since being classified as held for sale in 2021 due to the decline of the BTC price during the nine months ended September 30, 2022."6-K Bitfarms Ltd (BITF) (CIK 0001812477) 2022-11-14
[6] supported
A CNN article dated May 13, 2021 reported that bitcoin dropped around 12% after Elon Musk tweeted that Tesla would not accept it as payment.
"Bitcoin drops around 12% after Elon Musk tweets that Tesla will not accept it as payment"特斯拉公司
[7] supported
Marathon recorded impairments of digital assets totaling $30,329 thousand during 2021, which reflects write-downs when bitcoin's market value fell below its carrying value.
"We incurred impairments of digital assets during the year ended December 31, 2021 of $30,329 thousand."10-K MARATHON DIGITAL HOLDINGS, INC. (MARA) (CIK 0001507605) 2023-03-16
[8] supported
The Terra-Luna stablecoin collapse in May 2022 damaged confidence in the crypto market and accelerated the onset of a 'crypto winter'.
"This collapse remarkably damaged the confidence in the crypto market, accelerating the onset of a “crypto winter”."FTX's downfall and Binance's consolidation: The fragility of centralised digital finance
[9] supported
The BBC reported on May 13, 2021 that Tesla would no longer accept Bitcoin over climate concerns, according to Musk.
"Tesla will no longer accept Bitcoin over climate concerns, says Musk"特斯拉公司
[10] supported
FTX declared bankruptcy on November 11, 2022, which the paper treats as the collapse of its entire empire.
"Later, FTX declared bankruptcy on Nov. 11, 2022, which marks the collapse of the entire empire."FTX Collapse: A Ponzi Story
[11] supported
After the Terra-Luna collapse, users massively withdrew funds from crypto institutions and investors recalled cryptocurrency-collateralized loans.
"Users started massively withdrawing their funds from crypto institutions while investors recalled loans with cryptocurrencies as collateral."FTX's downfall and Binance's consolidation: The fragility of centralised digital finance
[12] supported
The cryptocurrency market surpassed three trillion dollars by the end of 2021 and was still only about a trillion dollars during the later 'winter'.
"surpassing the three trillion dollar mark by the end of 2021 and still accounting for about a trillion in the present ‘winter’ (Statista, 2023)"FTX's downfall and Binance's consolidation: The fragility of centralised digital finance
[13] supported
Tesla was reported in February 2021 to be betting on bitcoin as a blue-chip boost to the cryptocurrency.
"Tesla Bets on Bitcoin in Blue-Chip Boost to Cryptocurrency"特斯拉公司
[14] supported
Binance announced on 6 November 2022 that it would liquidate all FTT tokens on its books, and FTX went bankrupt on 11 November 2022.
"In response to this news, on 06 November 2022, Binance announced the liquidation of all the FTTs on its books, giving rise to a Twitter debate with FTX and Alameda Research which ended with the bankruptcy of FTX on 11 November 2022."FTX's downfall and Binance's consolidation: The fragility of centralised digital finance
[15] supported
By the end of the second quarter of 2021 the bitcoin price had fallen to $34,763.47, and by September 30, 2021 it was $43,534.56, well below the Q2 high.
"September 30, 2021 114,042 $ 29,301.56 $ 3,341,609 $ 52,944.96 $ 6,037,949 $ 43,534.56"10-Q MICROSTRATEGY Inc (MSTR) (CIK 0001050446) 2021-10-28
[16] supported
MicroStrategy recorded a large digital asset impairment loss of $424,774 thousand in Q2 2021 because the bitcoin carrying value was written down when the price fell.
"Digital asset impairment losses (424,774 )"10-Q MICROSTRATEGY Inc (MSTR) (CIK 0001050446) 2021-10-28
[17] documented
Cumulative impairment losses on MicroStrategy's bitcoin reached $754.7 million since acquisition as of September 30, 2021.
"which reflects cumulative impairment losses of $754.7 million since acquisition"10-Q MICROSTRATEGY Inc (MSTR) (CIK 0001050446) 2021-10-28