Hello! Recently, I noticed that people often talk about Black Monday in the context of the crypto market, but few truly understand what it was and why it’s important for us now. Let’s figure it out together because history can teach us a lot.

Black Monday is October 19, 1987, when stock markets around the world experienced a massive crash. The Dow Jones index fell by 22.61% in one day. It remains one of the largest single-day declines in history, and the wave spread from the US to European, Asian, and Australian markets. Imagine the scale of panic — billions of dollars of wealth vanished within hours.

What caused such a crash? First, stocks were overvalued after a period of rapid growth. People borrowed money to buy stocks, hoping for continued gains. When the market started to fall, they had to sell quickly to cover their loans. This created a snowball effect. Second, computerized trading systems automatically sold stocks when prices dropped below certain levels, accelerating the sell-off. High interest rates and international instability added to the chaos. When fear took over the market, panic set in — investors sold in haste without considering the consequences.

After the crash, regulators introduced new rules and mechanisms to halt trading to prevent a repeat of such a scenario. Recovery took years, and investor confidence was seriously damaged.

Now here’s what’s interesting: the crypto market has a lot in common with the stock market of 1987. There’s also high volatility, with periods of overvaluation followed by sharp declines. Algorithmic trading systems can trigger instant crashes if many traders start panicking simultaneously. Fear and speculation spread quickly. The main difference is that crypto remains largely unregulated, making it more vulnerable to extreme fluctuations.

Could something similar to Black Monday happen again in crypto? Theoretically, yes. That’s why it’s important to protect yourself. Diversify your portfolio — don’t put everything into one coin. Use stop-loss orders to limit losses. Most importantly — don’t panic. When the market drops, staying calm and making rational decisions is much more important than succumbing to mass panic.

By the way, looking at current data: USUAL is trading at $0.02 (-7.91%), PENDLE at $1.96 (-5.22%), IOTA at $0.06 (-7.19%). Small corrections, but it’s important to remember the lessons of history.