Analysis of Major Events in the Cryptocurrency Market (December 2017 to November 2022)#
This report explores several key events and their market impacts based on cryptocurrency market data from December 2017 to November 2022. These events include the ICO boom, the COVID-19 pandemic, the collapse of the Terra ecosystem, and the bankruptcy of FTX, all of which significantly affected price volatility and investor sentiment. Below is a detailed review and data analysis of each event.
December 2017 - ICO Boom, Bitcoin Surge#
Event Overview#
In December 2017, the cryptocurrency market witnessed the rise of ICOs (Initial Coin Offerings). Numerous startups raised funds through token issuance, attracting global investor attention. Meanwhile, Bitcoin's price experienced a sharp rise, soaring from about $1,000 at the beginning of the year to nearly $20,000, an increase of 1800%.
Market Impact#
- ICO Boom: Multiple projects utilized ICOs for funding, flooding the market with speculative demand, driving up the value of various tokens.
- Bitcoin Surge: As the market leader, Bitcoin's price broke through $20,000, attracting a large number of institutional and retail investors.
- Data Point: Bitcoin's price rose from $1,000 to $20,000, an increase of approximately 1800%.
Subsequent Impact#
The frenzy of this period laid the groundwork for subsequent market corrections, with many ICO projects failing due to a lack of substantive value, leading to a decline in investor confidence.
March 2020 - COVID-19 Global Pandemic#
Event Overview#
In March 2020, the COVID-19 pandemic rapidly spread worldwide. Countries implemented lockdown measures, plunging the global economy into recession. The cryptocurrency market was hit hard, with Bitcoin's price retreating from its peak, at one point dropping over 50%.
Market Impact#
- Pandemic Panic: Global financial markets experienced severe volatility, with cryptocurrencies, as high-risk assets, being particularly affected.
- Bitcoin Decline: Bitcoin's price fell from over $10,000 to around $4,000, a decline of approximately 60%.
- Data Point: Bitcoin's price dropped from $10,000 to $4,000, a decline of about 60%.
Subsequent Impact#
Despite the short-term market pressure, some investors viewed cryptocurrencies as a safe-haven asset during the pandemic, gradually restoring long-term demand.
May 2021 - Bitcoin Hits New Highs, Mid-Sized Blockchain Stablecoins#
Event Overview#
In May 2021, Bitcoin's price reached a new high, surpassing $64,000. During this phase, mid-sized blockchain projects and stablecoins (such as USDT and USDC) began to rise, significantly increasing market trading volume.
Market Impact#
- Bitcoin New High: Institutional investors entering the market drove prices up, with market confidence peaking.
- Stablecoin Growth: Trading volumes for stablecoins like USDT and USDC surged, enhancing market liquidity.
- Data Point: Bitcoin's price reached $64,000, an increase of approximately 2800% (calculated from the 2020 low).
Subsequent Impact#
The popularity of stablecoins laid the foundation for the development of decentralized finance (DeFi), but also drew the attention of regulatory authorities.
May 2022 - Collapse of the Terra Ecosystem#
Event Overview#
In May 2022, the stablecoin UST and its related token LUNA of the Terra ecosystem faced a collapse. UST lost its 1:1 peg to the US dollar, and LUNA's price plummeted, with its market value evaporating by over 90%.
Market Impact#
- UST Decoupling: UST fell from $1 to nearly $0, a decline of over 99%.
- LUNA Crash: LUNA's price dropped from about $100 to below $0.01, a decline of approximately 99.99%.
- Data Point: UST's decline was about 61%, while LUNA's decline was about 99%.
Subsequent Impact#
The collapse of Terra triggered a crisis of confidence in algorithmic stablecoins, affecting the entire DeFi ecosystem and severely damaging investor confidence.
November 2022 - FTX Bankruptcy#
Event Overview#
In November 2022, the cryptocurrency exchange FTX suddenly announced its bankruptcy. Its parent company SBF (Sam Bankman-Fried) was involved in a financial scandal, causing market panic. Prices of mainstream tokens like Bitcoin and Ethereum fell sharply.
Market Impact#
- FTX Bankruptcy: The exchange's collapse led to user fund losses and a sudden drop in market liquidity.
- Bitcoin Decline: Bitcoin's price fell from over $20,000 to about $15,000, a decline of approximately 26%.
- Data Point: Bitcoin's price dropped from $21,000 to $15,000, a decline of about 26%.
Subsequent Impact#
The FTX incident exposed regulatory gaps in the cryptocurrency industry, prompting governments worldwide to strengthen regulatory measures in the cryptocurrency market.
Overall, from 2017 to 2022, the cryptocurrency market experienced a process of frenzy, collapse, and gradual maturation. The ICO boom facilitated early prosperity, the COVID-19 pandemic tested market resilience, while the collapses of Terra and FTX revealed industry risks. These events not only led to price volatility but also prompted changes in regulatory policies and market structures. In the future, the market needs to seek a balance between innovation and compliance to achieve sustainable growth.
🔥 Solutions for Accessing OKX Exchange in China#
Many exchanges' original domain names may be blocked, or access may be slow due to overseas servers. Ordinary users often feel confused and even question whether the exchange is down. In fact, this is mainly due to network restrictions rather than platform issues. Therefore, exchanges like OKX and Binance frequently update backup domain names to ensure users can access the official website through alternative links.
-
- OKX Backup Domain: Overseas OKX - Requires VPN or Alternative Link
-
- Binance Backup Domain: Binance
-
- Bitget Backup Domain: Bitget
-
- Bybit Backup Domain: Bybit/Bybitglobal
-
- Huobi HTX Backup Domain: Huobi/HTX
-
- Gate.io Backup Domain: Gate.io
🔥 Further Reading#
🔥 Useful Tools for Alpha Finding#
1️⃣ Axiom Dog-Charging Tool: https://axiom.trade
2️⃣ Gmgn Dog-Charging Tool: https://gmgn.ai
3️⃣ dbot Dog-Charging Tool: https://app.debot.ai
4️⃣ Morelogin Multi-Account Fingerprint Browser: www.morelogin.com
Popular Searches#
Buying Bitcoin, Bitcoin Crash, Loan for Stock Trading, Loan for Cryptocurrency Trading, Stock Trading Mindset, Bitcoin, Presidential Coin, Tony Quotes, Crypto Guru Tony, Trump Coin, Buying Bitcoin in China, Cryptocurrency Trading Exchanges, OKX Download and Registration, OKX Recharge in China, Binance App Registration, Binance App Download, Binance Platform Buying Guide, Binance Registration, Binance Airdrop Registration, Binance iPhone Download, How to Buy Presidential Coin, How to Buy Dogecoin, Buying Bitcoin with RMB, How to Download OKX, Web3 Earning, Web3 Zero Investment, Bitget Mainland Download and Registration, OKX Passport Registration, OKX Download, Binance Download, Cryptocurrency Side Hustle, OKX Contracts, How to Recharge RMB on OKX, How to Recharge on OKX, How to Create an NFT Wallet, How to Recharge RMB on Huobi, Cryptocurrency Beginner's Guide, btc8848.com, Tony's Trading Mindset, Contract Leverage Bitwave, DeFi Mining, Cryptocurrency Earning, Can Airdrops Still Be Played in the Crypto Circle, What to Do if a Contract is Liquidated, How to Buy Presidential Coin on OKX and Binance, How to Buy Ethereum on OKX and Binance, How to Play DeFi Staking and Mining, Can NFTs Still Be Played, How to Earn from Web3 Airdrops, How to Write Inscriptions, How to Write Runes, Cryptocurrency Beginner's Guide, How to Trade Cryptocurrencies, Can You Make Money Trading Cryptocurrencies, Cryptocurrency Beginner's Guide btc8848.com, Can You Make Money Trading Cryptocurrencies, What is Contract Leverage, DeFi Mining, How to Earn in the Crypto Circle, OKX Airdrops, Node Staking, Liquidation, Financial Freedom, Night Investment heiyetouzi.xyz