The "312" Memory of the Crypto Market: From Panic to Reflection

On March 12, 2025, the crypto market experienced another significant fluctuation, reminiscent of that unforgettable day five years ago. On March 12, 2020, the price of Bitcoin plunged from about $8,000 to $3,800, with a single-day drop of over 50%, leading to the evaporation of hundreds of billions in market capitalization and a large number of leveraged trades being liquidated.

Since then, "312" has become an important symbol in the encryption circle. Every year on this day, industry insiders inevitably reflect on the past and reconsider the lessons learned. Let's review the significant events and market changes in the crypto market on March 12 each year since 2020.

March 12, 2021: The Rise of the Bull Market

The price of Bitcoin rebounded significantly from its low on March 12, 2020, breaking through $58,000 and setting a historical high at that time. That year, the crypto market showed various positive developments:

• Large enterprises are beginning to embrace Bitcoin, with a well-known electric vehicle manufacturer announcing the purchase of $1.5 billion worth of Bitcoin and planning to accept Bitcoin payments.
• The U.S. government has launched a large-scale economic stimulus plan, indirectly driving up the prices of assets such as Bitcoin.
• The concept of "digital gold" has emerged, and Bitcoin is seen as an effective tool for hedging against inflation.
• The DeFi and NFT markets have begun to thrive, driving up the prices of tokens in ecosystems like Ethereum.

March 12, 2022: Adjustment and Innovation

The price of Bitcoin fluctuates around $40,000, down from the previous year's peak, but still well above the low of March 2020. The main characteristics of this year are:

• Traditional financial institutions are beginning to actively layout in the digital asset field.
• Governments around the world are beginning to pay attention to the regulatory issues surrounding emerging digital assets such as NFTs.
• Some trading platforms show different positions when facing international sanctions.
• Although the overall market has entered an adjustment period, emerging sectors such as NFTs and GameFi remain active.

March 12, 2023: Aftermath of the Financial Storm

The price of Bitcoin has fallen to around $22,000, and the overall market is in a bear market cycle. Key events of this year include:

• The collapse of a major tech bank has triggered turmoil in the global financial market, significantly impacting some stablecoins.
• Stablecoin issuers commit to taking measures to maintain the stability of the coin's value.
• Some countries are showing signs of a relaxed attitude towards the regulation of cryptocurrencies.

March 12, 2024: New Peaks

The price of Bitcoin has surpassed $70,000, setting a new historical high. The market exhibits the following characteristics:

• The prices of mainstream cryptocurrencies have generally risen, significantly boosting market confidence.
• A well-known research institution has released an optimistic forecast, further boosting market sentiment.
• The traditional financial market has also undergone significant changes, reflecting the shift in the macroeconomic environment.

March 12, 2025: Volatility Again

The price of Bitcoin fell from its peak, dropping below $80,000 and hitting a low of $76,000, with the total liquidation amount across the network reaching $120 million. The main events of the day included:

• U.S. regulators have delayed the approval decisions for multiple crypto-related products, increasing market uncertainty.
• U.S. inflation data came in below expectations, sparking market speculation regarding monetary policy.
• High leverage trading on a certain trading platform led to large-scale liquidations, triggering market fluctuations.

It is worth noting that some trading platforms organized the "312" fifth anniversary event, reflecting on the profound impact this event had on the crypto market. A remark from an industry insider resonated widely: "Spot holders may only endure asset depreciation, but contract players could be completely knocked out due to an extreme fluctuation. This is the most valuable lesson I learned from the '312' event."

Although each "312" after 2020 has exhibited different market characteristics, this day always reminds participants in the crypto market to be vigilant about risks and to invest rationally. The crypto community often takes this opportunity to reflect on market changes, summarize lessons learned, and discuss the future development direction of the industry.