1. February 2014: Mentougou Incident: Bitcoin plummeted by 80% overnight
In February 2014, the world's largest Bitcoin exchange, Mt.Gox, was hacked, losing 850,000 Bitcoins, which accounted for 7% of the total global supply at the time. The price of Bitcoin collapsed directly from $800 to $100, a drop of 80%. Market confidence completely collapsed, and the 'Mentougou' incident became one of the most tragic black swan events in the cryptocurrency world.
2. September 2017: China bans ICOs: 80% of market value evaporated in one day
On September 4, 2017, the People's Bank of China and seven other departments jointly issued a document, completely banning token financing. Bitcoin dropped from $4,100 to over $2,800 on that day, a decline of over 30%. Many ICO projects went bankrupt, and the entire crypto market saw its market value shrink by 80%. Domestic projects rushed overseas, and investors were severely exploited, leading to widespread lamentation.
3. March 2020: Black Thursday: Ethereum Almost Hits Double Digits
In 2020, the COVID-19 pandemic swept across the globe, causing a complete collapse of financial markets, with U.S. stocks undergoing consecutive circuit breakers, and the crypto market couldn't withstand the pressure either. On March 12, Bitcoin plummeted from $8,000 to $3,800, while Ethereum crashed from $288 to $88. Countless traders were completely liquidated, and market sentiment dropped to an all-time low.
4. May 2021: China's Ban Escalates: 600,000 Traders Liquidated
On May 19, 2021, the three major associations in China jointly issued a statement banning virtual currency activities, causing Bitcoin to plunge from $42,000 to $29,000, with a single-day drop exceeding 30% (it later rebounded to $37,000). Both bulls and bears were hit hard, with 600,000 traders liquidated, amounting to $7 billion, marking a night that contract traders would never forget.
5. May 2022: Luna Crash: The Myth of the Crypto World Shattered Overnight
In May 2022, the Terra blockchain's Luna coin and UST stablecoin completely collapsed. Luna dropped from $100 to nearly zero, with a market cap evaporating by $40 billion. Bitcoin also fell from $40,000 to $30,000. Subsequently, firms like Three Arrows Capital went bankrupt, and Bitcoin briefly dipped to $10,000.
6. November 2022: FTX Collapse: The Second Largest Exchange Goes Bankrupt
In November 2022, the world's second-largest cryptocurrency exchange FTX was exposed for financial fraud, leading users to withdraw funds in a panic, ultimately resulting in a liquidity crisis and bankruptcy. Founder SBF was arrested, Bitcoin fell to $15,000, and the market plunged into a crisis of trust again.
