Looking back at the '519' in 2021, Bitcoin plunged from $50,000, directly halving to $30,000, while Ethereum dropped over 40% in a single day. It was a catastrophe in the crypto circle, with countless people going bankrupt, losing everything, and some even tragically resorting to jumping off buildings due to unbearable financial losses.
Now, a similar crash scenario has returned, making people feel anxious and fearing a repeat of historical tragedies.
On the night of May 19, it was a sleepless night for crypto traders, with those suffering heavy losses expressing their sentiments; this day is dubbed '519 Memorial Day' in the crypto circle. That night, Bitcoin fell below the $30,000 mark, dipping to $29,000, with a drop of up to 34%. Other cryptocurrencies also could not escape the crash, with Ethereum halving; other newly popular coins like Dogecoin and Shiba Inu saw drops of up to 56% and 64%, respectively.
Along with the decline, the largest US digital currency exchange, Coinbase, experienced issues, while Binance, the world's largest cryptocurrency exchange, suspended Ethereum and ERC20 withdrawals citing network congestion.
"I want to buy the dip but can't! Fiat transactions are simply not possible, it's clearly a way to cut leeks." An investor who bought Bitcoin and other cryptocurrencies a few years ago complained to AI Finance Society, noting that a message in a paid crypto group he joined stated, "If you haven't sold, don't cut your losses; cutting losses means you really lose." Currently, Bitcoin has reached 100,000.
What are the reasons behind the crash on May 19, 2025?
This crash in the crypto circle was actually foreshadowed! Before the significant drop, the market had been rising for a long time, and many people were making a lot of money. It's like blowing up a balloon; if you inflate it too much, it will eventually burst. The market naturally needs to adjust after a substantial rise; this is the most basic economic law.
Although the crypto circle has changed a lot compared to 2021, with institutions entering the market with professional strategies and plenty of funds, and blockchain technology making transactions safer, the risks have not decreased at all. Countries are tightening regulations on digital currencies, and a slight policy change can cause the market to tremble. Moreover, many people are still playing with high leverage, hoping to make quick money by borrowing to trade cryptocurrencies. But high leverage is like playing with fire; you can earn a lot when the market rises, but once it drops, you can lose everything in an instant, even going bankrupt. Ordinary people really need to be cautious!
The six major 'black swans' in crypto history
The crypto circle is like a rollercoaster, with ups and downs that can tug at the hearts of countless investors. Especially those 'black swan' events, which are like hidden dangers that can turn the market upside down at a moment's notice. Today, let's take a look at the six major 'black swans' in crypto history, and see how once-mighty investment moguls stumbled during these crises!
The data on the watch shows that Bitcoin is not afraid of natural disasters and policy impacts; the crashes caused by these factors are often good opportunities to buy the dip.
It is suggested that everyone pay more attention to the tragedies caused by the cryptographic technology itself, whether due to hacker attacks or the debunking of application scenarios. These factors often affect the consensus of crypto investors, leading to long-term depression.
Lastly, I want to remind my brothers: be especially cautious when buying the dip! If the market drops due to tightened policies or sudden disasters, don’t panic; the rebound speed is often very fast, just like a compressed spring that bounces back immediately when released. But if the crypto industry itself is 'sick,' for example, frequent technical vulnerabilities or consecutive project failures lead to a lack of trust in the industry, then it may take a year and a half for the market to recover! We need to understand these nuances in our investments to avoid pitfalls and make more money.
