Bitcoin Dropped from $64,000 to $28,000. Over 50% down in a single day. Some data shows it fell from $58k to $36k
Ethereum Crashed from its all-time high of $4,308 down to $2,200. Other reports say it dropped 40-50%
Dogecoin Fell 45%, down to $0.26.
Overall market More than $1 trillion was wiped out in just one day.
2. Why it crashed
China’s ban China ordered financial institutions to stop crypto transactions. On the same day, 3 major Chinese financial associations released a joint statement.
Elon Musk Tesla suspended Bitcoin payments, citing pollution from mining. Tesla had only started accepting Bitcoin a week earlier.
High leverage The market was heavily leveraged. As prices dropped, mass liquidations hit over 580,000 traders liquidated, wiping out $18.7 billion
3. What was the effect? Exchanges crashed. Binance, Coinbase, and others faced slow trading and errors.
Many people lost everything, especially those using high leverage.
There was panic in the market. People called it a collapse of faith.
This was the largest single-day crash since 2017.
