Review of 12 Historical Crypto Assets Winter Events ( 2017.9.4 Today marks the 8th anniversary, also 9.4 😅 )

1. June 2011: Mt. Gox hacking attack
Date: Mid-June 2011
Background: At that time, the largest exchange Mt. Gox was hacked and approximately 2,000 Bitcoins were stolen. The hackers manipulated the market, causing the price on the platform to briefly drop to $0.01.
Decline: The price dropped from approximately 31 dollars to about 10 dollars, a decrease of nearly 68%.
Impact:
The security of the exchange and user trust have been severely impacted.
Promote the development of subsequent security mechanisms such as cold storage and multi-signature.
2. December 5, 2013: Mainland first emphasized the prohibition of financial institutions participating in Bitcoin transactions.
Date: December 5, 2013
Background: The central bank and multiple ministries issued a notice clarifying that Bitcoin is not a legal currency and prohibiting financial institutions from participating in transactions.
Decline: The price of Bitcoin fell from about 1,200 USD to about 600 USD, a decline of approximately 50%.
Impact:
Market panic, trading volume plummets.
Trading shifts to over-the-counter (OTC) and informal channels.
3. February 2014: Mt. Gox announced bankruptcy.
Date: February 2014 (Trading suspended on February 7)
Background: Due to poor security management and long-term losses, Mt. Gox announced bankruptcy after discovering the loss of approximately 850,000 coins.
Decline: The price dropped from about 580 USD to about 400 USD, a decline of approximately 30%.
Impact:
Market confidence has been severely damaged.
Countries are beginning to promote compliance regulation for exchanges, especially anti-money laundering regulations.
4. September 4, 2017: Mainland China bans ICOs
Date: September 4, 2017
Background: Multiple ministries announced a comprehensive ban on Initial Coin Offerings (ICOs), requiring refunds and closing domestic exchanges.
Decline: Bitcoin fell from about $4,700 to about $3,200, a decline of approximately 32%. Ethereum fell from about $350 to about $200, a decline of approximately 43%.
Impact:
The ICO boom on the mainland has suddenly ended, with many projects turning to overseas options or running away.
Global regulation on ICOs is tightening.
Five, the entire year of 2018 "Crypto Assets Winter"
Key Point: The crash trend on January 16, 2018, or more broadly throughout the year.
Background: In 2017, the ICO bubble burst, Coincheck was hacked, and regulatory scrutiny intensified in various countries, leading to a sharp turn in market sentiment towards pessimism.
Decline: Bitcoin fell from about $17,000 at the beginning of the year to about $3,100 by the end of the year, a decrease of over 80%.
Impact:
Most ICO projects fail, and the industry faces severe淘汰.
The remaining projects focus on technology and ecological community building.
6. March 12, 2020 "Black Thursday"
Date: March 12, 2020
Background: The global pandemic has triggered market panic, tight liquidity, and investors are massively selling off all assets, including Crypto Assets.
Decline: The price of Bitcoin plummeted by over 40% in a day, with reports indicating that it even fell below $4,000 during certain periods.
Impact:
The market experienced a series of liquidations (especially on leveraged platforms like BitMEX), causing significant volatility.
Trigger reflection in the industry on market infrastructure and excessive leverage.
Subsequently: Following the introduction of global economic stimulus policies, Bitcoin and other assets rebounded rapidly.
7. May 2021: Musk suspends BTC payments & mainland regulation
Date: Mid-May 2021 (focusing on May 19)
Background: Musk announced that Tesla will suspend Bitcoin payments, emphasizing environmental pressure; the mainland market also reiterated its crackdown on financial institutions trading Crypto Assets.
Decline: Bitcoin fell from about $54,000 to about $30,000, a single drop of 30%, with a total decline of over 40% for the month.
Impact:
The market is strongly influenced by celebrity statements.
Environmental controversies drive Ethereum to accelerate its transition to PoS.
8. September 24, 2021: The mainland clears out the mainland Crypto Assets market.
Date: September 24, 2021
Background: The central bank and other departments have banned virtual currency trading and mining, criminalizing Crypto Assets, forcing exchanges and mining farms to withdraw from the mainland market.
Decline: Bitcoin dropped from about $44,000 to about $40,000, a decrease of approximately 10%.
Impact:
Platforms such as Huobi and Binance have withdrawn from the mainland, resulting in a significant migration of computing power.
Promote the accelerated development of DeFi and decentralized trading.
IX. February 24, 2022: The outbreak of the Russia-Ukraine war triggered market panic.
Date: February 24, 2022
Background: Russia's invasion of Ukraine has led to severe fluctuations in the global financial market, affecting Crypto Assets.
Decline: The price of Bitcoin dropped by about 8%, with a market value evaporating by hundreds of billions of dollars.
Impact:
The utility of viewing digital assets such as Bitcoin as a safe-haven asset is being questioned.
Market liquidity is tight, deepening macro uncertainties.
10. May 9-12, 2022: Terra/LUNA stablecoin collapse
Date: May 9-12, 2022
Background: The algorithmic stablecoin UST decoupling from the US dollar has caused the market value of LUNA to nearly reach zero, severely impacting the entire DeFi ecosystem.
Decline: Bitcoin fell from about $34,000 to about $26,000, a decline of about 24%. LUNA's market value evaporated by over $40 billion.
Impact:
Serious doubts have been raised about algorithmic stablecoins, causing centralized stablecoins to temporarily lose trust.
Global regulation accelerates stablecoin legislation, with MiCA and other bills pushing forward.
November, November 2022: The FTX Collapse Storm
Date: November 8–11, 2022
Background: The exchange FTX experienced a liquidity crisis and was exposed for misappropriating user funds, ultimately going bankrupt.
Decline: Bitcoin dropped from about $20,000 to about $15,600, a decline of approximately 22%.
Impact:
Further weaken users' trust in centralized exchanges (CEX).
Triggered regulatory agencies to strengthen scrutiny of CEX and DeFi, institutional investors are turning to compliant and transparent assets, such as crypto ETFs.
Twelve, in June 2023, the U.S. SEC sued Binance and CB.
Background: In June 2023, the US SEC filed a lawsuit against Binance and its founder, and the next day filed a lawsuit against CB for violating securities laws.
The drop was about 7%, but it rebounded higher at the end of the month.
Market reaction: Crypto Assets are under short-term pressure, and the stock prices of related exchanges have fallen sharply.
Impact:
Enhance the industry's focus on compliance operations and accelerate the construction of enterprise risk control. #今日你看涨还是看跌？ 😅😅