Cryptocurrency markets have always been characterized by high volatility—this is an axiom. Unlike most financial instruments, cryptocurrencies experience significant price fluctuations, sometimes reaching tens of percent within just a few hours. However, there are situations when volatility is not just a market feature but a consequence of global events that fundamentally change the rules of the game.
In one of his books, Nassim Taleb introduced the concept of the “Black Swan.” It refers to rare and unpredictable events that have a significant impact on the market and only seem obvious in hindsight. Although cryptocurrencies did not yet exist at the time of the book’s publication, this phenomenon perfectly explains extreme situations in this field.
On stock markets, historical data suggests that Black Swan events typically occur once every 10–15 years. The consequences of such events for stock markets, which can drastically alter the global economic landscape for years, are difficult to compare with their impact on cryptocurrency markets. As a result, the frequency of such occurrences in the crypto sphere is significantly higher. Generally, similar events happen every 1–2 years.
Among the most notable cases in the past five years, we can recall the “coronavirus crisis,” when BTC plummeted by more than 50% in a single drop. The bankruptcy of FTX and the collapse of Terra Luna in 2022 led to even more devastating consequences. The events of February 2025, fueled by ambiguous statements from U.S. President Donald Trump, are already being compared to those situations—Bitcoin, often referred to as “digital gold,” experienced a sudden 22% drop, the largest since June 2022. These events and their impact on the market prompted a discussion about the Black Swan phenomenon.
How traders navigate extreme market conditions
Extremely uncertain market conditions always force traders into difficult decisions. The primary blow of such events is taken by those trading derivative instruments. In the case of a major fundamental market reversal, the only protection may be a pre-set stop-loss. However, liquidation statistics, particularly during Black Swan events, show that not all traders use this tool. It’s important to remember that participating in futures trading inherently carries liquidation risks—this is part of the game.
For traders operating in spot markets, the situation is simpler (provided that the Black Swan event is not related to the bankruptcy of the exchange itself, as was the case with FTX). They are protected from liquidation, but sharp and continuous fluctuations in account balances can be a serious test for the nervous system. That’s why it is crucial to have a pre-developed action plan for such events and to follow it strictly. At the same time, it’s worth remembering that the biggest losses always occur during panic periods.
Burvix Traders strategies: balancing profitability and risk
At Burvix Traders, we continuously seek a balance between maximum profitability and minimal risk. First and foremost, we choose the most resilient assets with high market capitalization, as they recover faster than altcoins after market shocks. Additionally, by utilizing DCA (Dollar-Cost Averaging) strategies, we always keep a reserve of funds to buy assets at significantly lower prices, which helps reduce the average entry price. This is why our strategies can withstand market drops of up to 42–45% without significant losses.
In the event of a Black Swan and a sharp market decline, our clients who started trading with stablecoins receive assets purchased at different drop levels in their balance, along with a unified take-profit level, after which they exit with a profit. We do not use derivative instruments but operate exclusively in the spot market, allowing us to maintain positions without the risk of liquidation.
Our main advice to clients is—do not panic. History shows that, in the long run, markets always return to previously established levels; the only question is time. That is why we do not recommend trading with funds that may be needed in the near future but rather using only capital that can be invested in long-term deals.