Bitcoin dropped to $1 in one day, marking the day of suffering for the crypto circle on May 19, we will look back at what happened four years ago!

On May 19, 2021, Bitcoin's decline reached 34% in one day, with some exchange data showing a spike to $1. Ethereum, Dogecoin, and other altcoins dropped over 50%, leading to trading outages and over 48 liquidations. First, on the 18th, China's three major financial agreements jointly announced a ban on financial institutions engaging in virtual currency-related businesses, essentially targeting mining. Elon Musk, a super bull in the crypto circle, also tweeted about Bitcoin mining polluting the environment and announced a pause on Bitcoin payments. At that time, Tesla could be purchased using Bitcoin and Dogecoin. Musk was truly a faith leader in the crypto circle. When faith began to waver, it directly led to a shake in market confidence, causing an immediate drop of 12%. Moreover, from the beginning of 2021 to May, Bitcoin's price soared from $20,000 to $64,000, with many players using high leverage; the clearing value for bulls was extremely high, laying the groundwork for the crash.

Although the regulatory environment has matured, the crypto circle remains an immature financial market, extremely fragile. Keep your hands and mind in check; beware of a repeat of May 19!