On May 19, Bitcoin (BTC) and altcoins experienced their most significant crash since the "Black Thursday" of March 2020, wiping over $400 billion from the cryptocurrency market in a single day.
Ethereum (ETH), the second-largest cryptocurrency by market cap, plunged deeper into the red zone alongside other altcoins, recording steeper losses than BTC. This marks the digital asset market's most severe downturn since the March 2020 "Black Thursday" crash.
Data from FTX and TradingView showed ETH trading at approximately $2,469.50 at press time—a 26.36% drop in 24 hours, its worst single-day decline since March 12, 2020.
Messari reported massive sell-offs in the decentralized finance (DeFi) sector, with DeFi-related tokens among the hardest hit. These included Maker (MKR), Yearn.Finance (YFI), Compound (COMP), Uniswap (UNI), and Chainlink (LINK).
"Holders are liquidating across the board today, and it's all correlated," said Joel Kruger, Currency Strategist at LMAX Digital.
Notably, the price of Dogecoin (DOGE), a popular meme coin, followed the broader market downturn, shedding over 20% in 24 hours to around $0.379.
"Altcoins are inherently more speculative than Bitcoin, with no significant mainstream adoption, recognition, or utility," noted Hunain Naseer, Senior Editor at OKEx Insights. "They rise faster in bull markets and fall harder during corrections."
The cryptocurrency market's total capitalization plummeted by $460 billion in 24 hours, with TradingView data showing a 21.96% drop to ~$1.565 trillion.
"The catalyst is a market that had parabolic gains and was overdue for a correction, now facing pressure from global macroeconomic forces dampening risk assets," Kruger added.
The Wall Street Journal reported concurrent declines in U.S. equities, with tech stocks bearing significant losses.
FAQ: Understanding the Cryptocurrency Market Crash
1. What caused the recent cryptocurrency market crash?
The crash resulted from a combination of overdue corrections after parabolic gains and macroeconomic pressures affecting risk assets globally.
2. Why did altcoins like ETH fall harder than Bitcoin?
Altcoins are more speculative with thinner liquidity and less institutional adoption, making them more volatile during market downturns.
3. How long might this correction last?
Duration depends on broader market stability, particularly U.S. equities. Analysts suggest monitoring macroeconomic indicators for recovery signals.
👉 Stay updated on market trends with real-time data
Figures and projections are subject to rapid change in volatile markets.