Understanding the 519 Crash in the Crypto Market in One Sentence
The 519 Incident: One of the Days of Massive Crash in the Crypto World 💥📉
Date: May 19, 2021
Event Review: A 30% drop in one day, countless people faced liquidation!
The 519 incident refers to a major crash in the crypto market on May 19, 2021. On that day, the price of Bitcoin plummeted from $43,000 to $30,000, and mainstream coins like Ethereum also took a dive, with the market dropping by over 30% in a single day. The total liquidation amount across the network exceeded $8 billion in 24 hours, leading to countless accounts being wiped out, humorously dubbed the "Great Crypto Slaughter."
Why did the crash happen?
Regulatory Crackdown: The mainland government reiterated its crackdown on Bitcoin mining and trading, causing panic selling in the market.
Major exchanges began to restrict Chinese users, and some people, fearing their accounts would be affected, hurriedly sold their coins to cash out.
Market Bubble Too Big: At that time, the market was at a bull market high, and many people were using high leverage to trade; once the drop occurred, a chain reaction of liquidations led to a PRICE avalanche.
US Stock Market & Global Economic Fluctuations: Factors like US crypto tax policies and stock market volatility also dampened investor confidence, leading to capital flowing out of the market.
What happened after 519?
After Bitcoin dropped to $30,000, it rebounded to $69,000 in the second half of 2021, but the overall market began to trend towards a bear market. This crash caused many newcomers to pay their "tuition fee," further validating the high risks in the crypto world.
Lessons Learned: Don't go all in, avoid high leverage; when a crash comes, you can't escape! Policy news is crucial; regulatory dynamics can directly affect market sentiment.
Don't be too greedy in a bull market, and don't panic in a bear market; the market has cycles, so respond calmly!
