Crypto is a bubble🫧, and all tokens will return to zero?

As a crypto holder, I don’t think my build is qualified. I can only say that what cannot be killed will eventually become stronger!

The following is the historical route of cryptocurrency crashes. After reading it, you will find the pattern yourself~

1. June 2011 crash

Time period: June-November 2011

Bitcoin price: From $32 to $2 (~94%)

reason:

• Mt. Gox exchange was hacked, a large amount of Bitcoin was stolen, and market confidence collapsed.

• Regulatory uncertainty is increasing, Bitcoin is still in its early stages as an emerging asset, and investor confidence is fragile.

2. April 2013 crash

Time period: April 10-12, 2013

Bitcoin price: From $266 to $50 (~81%)

reason:

• Bitcoin bubble: At that time, the price of Bitcoin rose rapidly in a short period of time and the market was over-speculated.

• Technical problems at the Mt. Gox exchange led to excessive trading volume, system crash, and market panic.

3. Bear market from late 2013 to 2015

Time period: December 2013 - January 2015

Bitcoin price: From $1,151 to $152 (~87%)

reason:

• The People’s Bank of China cracks down on Bitcoin and announces a ban on financial institutions from providing Bitcoin trading services.

• The collapse of Mt. Gox exchange (February 2014) resulted in the loss of 850,000 bitcoins and a drop in market confidence.

• As global regulations become stricter, the market gradually cools down and enters a long-term bear market.

4. The bear market from late 2017 to 2018 (“Crypto Winter”)

Time period: December 2017 - December 2018

Bitcoin price: From $19,783 to $3,200 (~84%)

reason:

• ICO bubble burst: In 2017, a large number of projects raised funds through ICO (initial coin offering), but most of them failed or were fraudulent, leading to a collapse of market trust.

• Global regulatory crackdown: China completely bans ICOs, the US SEC strengthens supervision, and the market panics.

• The withdrawal of leveraged funds and massive selling caused the market to enter a long-term bear market.

5. The “Black Thursday” crash in March 2020

Time period: March 12-13, 2020

Bitcoin price: From $7,900 to $3,800 (~52%)

reason:

• The coronavirus pandemic triggered global financial panic, with investors selling high-risk assets (including cryptocurrencies).

• The U.S. stock market circuit breaker and the extreme risk aversion in the market caused a chain reaction for Bitcoin.

• High leverage liquidation caused the Bitcoin contract market to explode, exacerbating the decline.

6. The May 2021 crash

Time period: May-July 2021

Bitcoin price: From $64,800 to $29,000 (~55%)

reason:

• Tesla stops accepting Bitcoin payments (Musk announced that it would stop supporting BTC due to environmental reasons).

• China’s cryptocurrency crackdown escalates: Bitcoin mining is banned and several mines are closed.

• The market was over-leveraged, with a large number of contracts liquidated, accelerating the decline.

7. Luna crash and FTX crash in May 2022

(1) Luna/UST Collapse (May 2022)

Time period: May 2022

Bitcoin price: From $39,000 to $26,000 (~33%)

Luna price: from $119 to $0 (100% drop)

reason:

• Terra ecosystem collapses: algorithmic stablecoin UST decouples, Luna enters a death spiral, and tens of billions of dollars evaporate.

• Market confidence collapsed, triggering a decline in the overall crypto market.

(2) FTX Exchange bankruptcy (November 2022)

Time period: November 2022

Bitcoin price: From $21,000 to $15,600 (~26%)

reason:

• The FTX exchange fund misappropriation scandal was exposed, causing market panic.

• A run on user withdrawals caused FTX to be unable to repay its debts and declare bankruptcy.

• Chain reaction: Other crypto institutions (BlockFi, Genesis, etc.) collapsed one after another.

Conclusion ⬇️

1. Exchange security issues (hacker attacks, bankruptcy) - such as Mt. Gox in 2011 and FTX in 2022

2. Tightening of regulatory policies (government suppression, prohibition of trading or mining) - such as China in 2013 and China's mine closures in 2021

3. Market bubble burst (overheated speculation, ICO scams, excessive leverage) - such as the ICO bubble in 2017 and the leverage liquidation in 2021

4. Macroeconomic impacts (epidemics, economic crises, stock market crashes) – such as Black Thursday in 2020

5. Crisis within the crypto industry (project collapse, liquidation) - such as Luna/UST, FTX in 2022

These events show that although the crypto market is volatile, each crisis is followed by a new cycle of recovery and innovation.

The foam will burst, the tide will recede, and you can tell who is swimming naked at a glance