Review and analysis of the "519" major events in the currency circle
After a period of sustained high prices, the price of Bitcoin climbed to a high of $65,000, and many investors received amazing returns. The rate of return ranged from dozens to hundreds or even thousands of times.
With the frenzy of the market, not only insiders but also outsiders are eager to get involved in this field and seek investment opportunities. However, the risks in the market are quietly accumulating.
On May 18, 2021, the People's Bank of China and the three major financial industry associations jointly issued a statement, pointing out that the provision of virtual currency trading services is suspected of engaging in illegal financial activities, which sounded the alarm for the market. Despite this, the market remained stable on the same day and even rose slightly.
But on May 19, the situation took a sharp turn for the worse. Many investors initially remained optimistic and believed that the short-term correction in the market was normal. However, as the price of Bitcoin plummeted by $4,000 that afternoon, panic in the market began to spread.
A fan mentioned: "I was not spared at that time. Because I was overconfident, I used all my funds as margin before the meeting that night, hoping to buy the bottom when the market fell back. However, after the meeting, when I opened the trading software, I was surprised to find that the account balance was zero. That candlestick chart that was almost cut in half has become an unforgettable memory for me." On that day, the price of Bitcoin fell from $44,000 to $29,000, a drop of 34%. The prices of most tokens were directly cut in half, and the currency market was wailing. The lethality of this incident is comparable to the "94" and "312" incidents in history, and countless investors have suffered heavy losses. In the following days, news of mine closures, mining machines going overseas, and financial platforms being delisted came one after another, and the currency circle fell into an unprecedented panic. Many investors believed that the bull market was over and chose to leave. However, the market trend after the "519" incident was beyond the expectations of many people. Some short investors who survived the bull market thought they saw an opportunity and opened short orders one after another, expecting to make a fortune. However, the price of Bitcoin suddenly rebounded, breaking through a new high of $67,000, catching many contract players off guard and causing heavy losses.
For ordinary investors, even in a bull market, only a few can successfully cash out. More people take over at high prices, expecting the next new high, but are stuck for years.
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