Have you ever heard of Black Monday? It’s not just some historical fact from a finance textbook — it’s an event that still influences how markets operate today. And here’s the interesting part: if you understand what happened in October 1987, you can see why the crypto market is so volatile right now.

On Monday, October 19, 1987, one of the largest stock market crashes in history occurred. The Dow Jones Index dropped by 22.61% in a single day. Yes, in one day. And it wasn’t just in the U.S. — the crash spread worldwide. Europe, Asia, everywhere experienced losses.

Why did this happen in the first place? There were several factors. First, stocks were overvalued. People borrowed money to buy stocks, thinking the growth would never end. Second, computerized trading systems appeared that automatically sold stocks when prices fell below a certain level. When the market started to decline, these algorithms triggered a cascade of sell-offs. Add high interest rates and international tensions — and you get the perfect storm for a crash.

The consequences were severe. Investors lost billions. It affected not only the wealthy but also ordinary people who invested their savings. Trust in the market was undermined for years. However, after that, regulators introduced emergency mechanisms — so-called circuit breakers, which halt trading if the market drops too quickly.

Now, here’s what worries me: the crypto market resembles the stock market of 1987 in some ways. The same volatility, the same periods of overvaluation followed by sharp declines. Crypto also has algorithmic trading that can cause instant crashes. Fear and speculation spread quickly. And most importantly — crypto markets are much less regulated than traditional stock markets. There aren’t enough protections against extreme price swings.

How to protect yourself? First, diversify your portfolio. Don’t put all your eggs in one basket. Second, use stop-loss orders to limit losses. Third — and this is the most important — don’t panic. When everyone else is losing their heads, staying calm can save your capital.

Right now on Gate.io, you can track the behavior of different assets. PENDLE is up 2.89%, USUAL has fallen 0.07%, IOTA has dropped 0.38%. That’s normal volatility. The main thing is to remember history and avoid repeating the mistakes of investors in 1987. Black Monday taught us that markets can move unpredictably, but preparation and composure are what save your portfolio.