FIVE YEARS AGO, CRYPTO SUFFERED ITS MOST BRUTAL SINGLE-DAY CRASH
Five years ago today, the crypto market experienced one of the most violent liquidations in its history as panic selling wiped out billions across digital assets in less than 24 hours.
Bitcoin collapsed more than 30%, Ethereum plunged roughly 40%, and Dogecoin crashed around 45% during the selloff. More than $8 billion in leveraged positions were liquidated, with an estimated 775,000 traders wiped out across major exchanges.
The collapse followed a rapid sequence of negative catalysts that shattered market sentiment within days.
On May 12, Elon Musk announced that Tesla would suspend Bitcoin payments over environmental concerns, triggering the first major wave of selling pressure.
Less than a week later, China’s central bank intensified its crackdown on crypto activity by prohibiting financial institutions from offering crypto-related services, accelerating fear across global markets.
As volatility exploded, major trading platforms including Binance, Coinbase and Robinhood experienced outages and disruptions while traders rushed to exit positions.
The event became one of the defining moments of the 2021 cycle, exposing the fragility of leverage-driven markets and setting the stage for months of heightened volatility across the crypto sector.
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