When it comes to the crypto market's crash, you can't help but think of the 312 Event in 2020, which was so terrifying that many people still remember it vividly.

What impressed me the most was the psychological contrast. Starting on March 8th, BTC dropped from 9,200 to 8,300, a nearly 10% decline; ETH fell from 250 to 210, a 16% drop. At that time, people were still relatively calm, thinking it might just be a temporary dip, and started considering whether to buy the dip. The next day was even worse, with BTC falling to 7,700 and ETH to 190. Two days of continuous plummeting left everyone a bit stunned, but some still gritted their teeth and bought in, thinking the drop was deep enough and the risk was manageable.

The most bizarre part was on March 10th and 11th, when the market suddenly calmed down and started shaking out traders. These two days gave everyone the illusion that a rebound was imminent, and many went bullish, heavily increasing their positions. Some even started borrowing money and taking out loans, preparing to turn things around during the rebound.

Then came March 12th.

BTC was directly hammered from 8,000 to 5,500, a 31% drop in one day. ETH fell from 200 to 120, a 40% decline. Altcoins, let alone, saw multiple times the losses everywhere, and the entire market was affected. At that moment, the 312 Event was officially born.

I remember the market sentiment completely collapsing at that time. Those who had been dreaming of buying the dip started to despair, shouting that the crypto world was doomed and Bitcoin was going to zero. Futures traders suffered even worse—whether they were long or short, they all got liquidated, losing everything, which strangely brought a sense of relief.

By March 13th, the rebound was just a fleeting illusion. BTC bounced back to 6,200 but then crashed again to 3,800, a 38.7% decline. ETH rebounded to 145 but then fell to 89, a 38.6% drop. By then, over 90% of the crypto community had basically given up; everyone was more relaxed because there was nothing left to fear—everything was over.

Looking back now at the 312 Event, it actually reflects a pattern in the crypto market: crashes are rarely one-time events but part of a process. Every rebound attracts new buyers, only to find the bottom at the very last moment. Those who buy during the rebound often become the final victims.