The 519 Crash in the Cryptocurrency Circle

On May 19, 2021, a massive crash occurred in the cryptocurrency market. On this day, Bitcoin and many other cryptocurrencies experienced a dramatic price drop. Here are some key points about the 519 tragedy:

1. Price crash:

The price of Bitcoin fell from about $64,000 to about $28,000 in a short period of time, a drop of more than 50%. Other major cryptocurrencies have also experienced similar sharp declines.

2. Cause Analysis:

- Chinese officials have issued a series of regulatory measures on cryptocurrency trading and mining activities, including the People's Bank of China (PBOC) reiterating the ban on virtual currency trading.

- Elon Musk expressed concerns about Bitcoin's energy consumption and announced that Tesla would suspend accepting Bitcoin payments, which triggered negative market sentiment.

- The high leverage in the cryptocurrency market has led to a large number of liquidations and liquidations, exacerbating the selling pressure in the market.

3. Impact:

The crash caused huge financial losses to many investors, especially those who used high leverage to trade. Some miners were forced to sell their cryptocurrency holdings as market prices plummeted, further depressing prices.