"Liquidated. Lost everything. I no longer hold any cryptocurrencies."
A Bitcoin and Dogecoin investor, after May 19’s crypto market crash, exited silently—a stark contrast to his earlier bullish forecasts. His story mirrors the volatility that has defined the past 100 days in crypto.
Since late 2020, especially post-February 2021, cryptocurrencies surged into a bull market, drawing everyone from retail traders to institutional investors. 100 days of frenzied wealth accumulation and heart-stopping crashes ensued. For many young investors, crypto became the new frontier—far more exhilarating than stocks or ETFs.
But the euphoria was short-lived. On May 19, the market collapsed: Bitcoin plunged 30%, Ethereum 40%, and Dogecoin over 40%. In 24 hours, 580,000 traders faced $6.9 billion in liquidations. Newcomers learned the hard way: Crypto is a meat grinder.
"One Day in Crypto Equals a Year Elsewhere"
For rookie trader "Xiao Lin," May 19 was a brutal introduction. After investing ¥10,000 in Dogecoin on a whim (inspired by a TikTok video), he watched its value evaporate by 15% in minutes. Panicked, he asked online forums: What’s happening?
He wasn’t alone.
- Leverage traps: Traders like "Li Liang," using even 3x leverage, saw ¥100,000 vanish in forced liquidations.
- Rebound whiplash: Some sold at losses, only to see prices recover hours later—"cutting meat" too soon.
👉 Why Leverage Trading Is a Double-Edged Sword
Signs of the crash were there:
- Bitcoin’s "Fear & Greed Index" hit 79 (extreme greed).
- Regulatory crackdowns in China and the U.S. spooked markets.
The Short-Lived Wealth Party
Before the crash, crypto mania peaked.
- Meme coins reigned: Dogecoin (100x gains), Shiba Inu (SHIB), and absurd spin-offs like "PikachuCoin" overshadowed Bitcoin.
- New investors piled in: A 90er, "Steven," invested ¥600 in SHIB, hoping for "class mobility." Others, like "Youzi," saw 400% returns in days—"my only chance to change my social status."
But euphoria bred recklessness:
- Scam coins proliferated: Projects issuing 100 billion tokens would dump 90% suddenly, leaving buyers with worthless assets.
- Expert warning: "When everyone jumps in, the bull run ends."
Who Actually Profits?
Hint: Not the average trader.
- Exchanges: Coinbase’s Q1 2021 profit hit $771 million—mostly from trading fees.
- Miners: Controlling 70% of Bitcoin’s hash rate, Chinese mining farms profit from low-cost energy and strategic token hoarding.
- Institutions: Tesla earned $101 million from Bitcoin sales in Q1 2021.
👉 How Mining Farms Dominate Crypto’s Supply
Yet, believers remain. One Bitcoin holder insists: "Digital currencies have a bright future."
As economist Paul Krugman noted: "Bitcoin is a cult—it always finds new believers."
FAQ
Q: Is crypto investing just gambling?
A: Without research, yes. Volatility exceeds stocks, and scams abound.
Q: Can meme coins like SHIB make you rich?
A: Possible, but high-risk. Most are pump-and-dump schemes.
Q: Why do exchanges win regardless of market trends?
A: They profit from trading fees, not price movements.
Q: Is mining still profitable?
A: Only with cheap electricity and scale—small miners struggle.
Q: Will governments ban crypto?
A: Unlikely to vanish, but regulation will tighten (e.g., China’s mining crackdown).
Names marked with asterisks are pseudonyms for anonymity.
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