A Five-Year Review of the Crypto Market's "312": The Ups and Downs from Big Dump to New Highs

On March 12, 2025, the crypto market experienced another wave of fluctuations, reminiscent of the terrifying market crash on March 12, 2020. On that day five years ago, the price of Bitcoin fell from around $8,000 to $3,800, with a single-day drop of over 50%, causing hundreds of billions of dollars in market value to evaporate and countless leveraged traders facing liquidation.

Since then, "312" has become an important symbol in the cryptocurrency industry. On this day every year, industry participants approach it with caution, reflecting on past lessons learned. Let's review the significant events and market changes in the crypto market on March 12th each year since 2020.

March 12, 2021: Bull Market Begins

After experiencing the low of 2020, the price of Bitcoin has broken through $58,000 on this day, setting a historical high at that time. Market sentiment is high, mainly influenced by the following factors:

• A well-known electric vehicle manufacturer announced the purchase of a large amount of Bitcoin and plans to accept Bitcoin payments.
• The US government has launched a large-scale economic stimulus plan
• Bitcoin is seen as an effective tool for hedging against inflation.
• The decentralized finance (DeFi) and non-fungible token (NFT) ecosystems are beginning to thrive.

March 12, 2022: Market Adjustment Period

Bitcoin's price fluctuates around $40,000, having fallen from the previous year's high but still well above the low in March 2020. Major events of this year include:

• Traditional financial institutions are beginning to actively venture into the digital asset space.
• Singapore announces tax on NFT transactions, showing a change in regulatory attitude.
• Some trading platforms have stated that they will not freeze user accounts without reason, reflecting industry self-discipline.
• Emerging fields such as NFT and GameFi (gamified finance) remain active

March 12, 2023: Bear Market Test

The market has entered a bear market cycle, with Bitcoin prices dropping to around $22,000. Key events of this year include:

• The collapse of a certain American bank has triggered shockwaves in the global financial market, significantly impacting the stablecoin market.
• Stablecoin issuers commit to using company resources to maintain the stability of the coin's value.
• Some central banks in certain countries have a more relaxed attitude towards the regulation of encryption.

March 12, 2024: New Peak

The price of Bitcoin has surpassed $70,000, setting a new historical high. Market confidence has significantly strengthened, with major highlights including:

• A well-known investment institution predicts that Bitcoin will reach $150,000 by mid-2025.
• Changes in the global macroeconomic environment, traditional financial market yields are rising

March 12, 2025: Volatility Again

The price of Bitcoin has fallen from its peak, breaking below $80,000 and hitting a low of $76,000. The total liquidation amount across the network has reached $120 million. Major events include:

• Regulatory agencies have delayed the approval of multiple encryption-related products, increasing market uncertainty.
• US inflation data came in lower than expected
• High leverage trading on a certain exchange platform has led to a large number of liquidations, affecting market sentiment.

For five years, the date "312" has always been an important memory point for participants in the crypto market. Although the market performance in subsequent years has varied, the lessons from the extreme market conditions in 2020 remain profound. On this day every year, the industry engages in reflection and discussion, analyzing market changes, summarizing experiences, and exploring the future development direction of the industry.

An industry observer once said: "For spot holders, extreme market conditions may at most lead to a temporary reduction in assets, but for high-leverage traders, a severe fluctuation can have catastrophic consequences. This is the most valuable lesson the '312' incident has taught us."

Although history may not completely repeat itself, the warning of "312" still exists. Participants in the crypto market need to remain vigilant at all times, manage risks wisely, and develop steadily in this field full of opportunities and challenges.