In the early hours of May 19, 2025, it was destined to be a sleepless night for crypto investors. The market suddenly dropped without warning, with Ethereum leading the charge, falling in a horrifying manner, making investors break out in cold sweat. This scene was a complete replica of the '519 disaster' four years ago.
Looking back at the '519' of 2021, Bitcoin plunged from a high of 50,000 dollars to 30,000 dollars, while Ethereum fell over 40% in a single day. It was a catastrophe for the crypto world, with countless people facing liquidation and losing everything. Some even tragically took to the rooftops, unable to bear the immense financial loss.
Now, similar scenes of plummeting prices have returned, how can one not be alarmed, fearing that the tragic events of history will repeat themselves.
What are the reasons behind the crash on May 19, 2025?
The recent crash in the crypto market actually had early signs! Before the major drop, the market had been rising continuously for a long time, and many people were reaping substantial profits. It’s like inflating a balloon; if you blow it too much, it will eventually burst. When the market rises too high, a correction is natural—this is the most basic economic law.
But why did it suddenly crash in the middle of the night? There must be 'big fish' behind this! Those holding significant funds and chips can disrupt the market with a casual sell-off. Perhaps they had already sensed the risk, or for profit, they took advantage of the nighttime when everyone was relaxed to unload their assets, triggering panic selling among retail investors and completely collapsing the market.
Although the crypto world has changed a lot compared to 2021, with institutions entering the market with professional strategies and abundant funds, and blockchain technology making transactions safer, the risks have not diminished at all. Countries are tightening regulations on digital currencies, and as soon as policies shift slightly, the market shakes. 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; while you can earn a lot when the market rises, once it falls, you can lose everything in an instant, even face liquidation. Ordinary people really need to be cautious!
The six major 'black swan' events in crypto history
In the crypto world, the ups and downs are like a roller coaster, with each fluctuation gripping the hearts of countless investors. Especially those 'black swan' events, which are simply fraught with hidden dangers, can turn the market upside down as soon as they surface. Today, let's delve into the six major 'black swan' events in crypto history, and see how once-mighty investment moguls stumbled during these crises!
1. The Mentougou Incident: The evaporation of 850,000 Bitcoins shattered the faith of the wealthy!
In February 2014, the Mentougou incident occurred when the world's largest Bitcoin exchange, MTGOX, was hacked, leading to the disappearance of 850,000 Bitcoins, accounting for 7% of the global total! Bitcoin's price plummeted by 80%, leaving those who firmly believed in Bitcoin in shock, their faith shattered.
2. The 94 Incident: A single announcement caused 100,000 people in the crypto community to evaporate 160 million overnight!
On September 4, 2017, a domestic announcement declared ICOs illegal financing. As soon as the news broke, the crypto world exploded. Token prices plummeted, Bitcoin dropped by 32%, and 100,000 people lost 160 million overnight. Once-mighty 'crypto tycoons' could only tremble in fear amidst this storm.
3. The 312 Incident: A revelry during the pandemic turned into a nightmare for the wealthy!
On March 12, 2020, the pandemic swept the globe, and the U.S. stock market collapsed. Many people considered Bitcoin a 'safe haven.' However, just two days later, Bitcoin's price was halved, leaving those who held Bitcoin for safety with their assets reduced to tears.
4. The 519 Incident: The central bank's announcement caused the wealth of many to evaporate by 34% instantly!
The '519 disaster' of 2021 was also frightening, as the central bank named and shamed virtual currency trading violations. Initially, the market held up, but the next night, Bitcoin dropped 34%, and many who prided themselves as 'investment gods' saw their wealth evaporate by more than half.
5. The Luna Black Swan Incident: A dream of a South Korean turned into a nightmare for the wealthy!
In 2022, Luna and UST, once 'star tokens', were directly sold off by major players and collapsed. Luna's price plummeted over 90%, and UST also completely fell off, causing many investors who bet on them to fall from heaven to hell.
6. The FTX Crisis: A valuation of 32 billion dollars vanished overnight!
At the end of 2022, the FTX exchange collapsed. This 'giant' with a valuation of 32 billion dollars fell due to internal management chaos and embezzlement issues. Trust in the entire crypto world crumbled, and Bitcoin's price plummeted by 75%, causing countless people's wealth to vanish.
Event Date Bitcoin Drop Event Duration Event Cause Bottom Bounce Multiplier Mentougou February 2014 80% 2 years Hacker attack, causing investors to lose trust in crypto 5 times 94 September 2017 32% 1 month Policy suppression in mainland China 6 times 312 March 2020 50% 2 months Pandemic causing global market crash 2 times 519 May 2021 34% 5 months Policy suppression in mainland China 2 times LUNA/FTX Crisis May 2022 70% 1.5 years Project's reckless development, causing investors to lose trust in crypto 4 times
According to the data on the clock, Bitcoin is not afraid of natural disasters and policy impacts; drops caused by these factors are often good times to buy the bottom.
I suggest everyone pay more attention to disasters caused by crypto technology itself, whether due to hacking or the discrediting of application scenarios. These factors often affect the consensus of crypto investors, leading to prolonged economic downturns.
Finally, I want to remind everyone: be especially cautious when bottom-fishing! If the drop is due to tightened policies or unexpected disasters, don’t panic; the rebound is often quick, just like a spring that, when compressed, bounces back immediately when released. But if the crypto industry is 'sick', for example, frequent technical vulnerabilities or consecutive project collapses lead to a lack of trust in the industry, then it may take a year and a half or more for the market to recover! In our investments, we need to understand these nuances to avoid pitfalls and make more profit.
Currently, in a bull market with swirling winds, we have opportunities to share passwords every day.
