Today marks the five-year anniversary of the most severe single-day crash in cryptocurrency history. On this day, Bitcoin plummeted by 30%, Ethereum by 40%, and Dogecoin by 45%, resulting in over $8 billion in liquidations within 24 hours. The crash wiped out approximately 775,000 traders.
The downturn was triggered by a series of events, beginning with Elon Musk's announcement on May 12 that Tesla would no longer accept Bitcoin payments. This was followed by China's People's Bank of China banning financial institutions from engaging with cryptocurrencies on May 18. The panic led to major exchanges like Binance, Coinbase, and Robinhood experiencing outages as traders rushed to exit the market.
Five-Year Anniversary of Crypto's Historic Single-Day Crash
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