Do you remember the shocking 312 incident in the crypto world? Today I want to take everyone back to the brutal crash in March 2020 and feel just how terrifying the crypto space was back then.

It all started like this. On March 8th, Bitcoin suddenly plummeted from $9,200 to $8,300, a nearly 10% drop. Ethereum also crashed from $250 to $210, a 16% decline. At that time, everyone thought it was just a normal correction, that the drop was almost over and a rebound was imminent, so many rushed in to buy the dip.

But the next day was even worse. On March 9th, Bitcoin fell again from $8,300 to $7,700, a 7.2% decrease. Ethereum dropped from $210 to $190, a 9.5% decline. After two days of continuous decline, many started to panic, but still told themselves that the price had fallen enough and the risk was low, so they entered the market to buy the dip again.

The real horror of the 312 incident lies here. On March 10th and 11th, the market did not continue crashing; instead, it oscillated and shook out traders, giving everyone a false sense of hope. Many, seeing the market stabilize, started buying heavily, expecting a rebound.

Then came March 12th. That day, Bitcoin dropped straight from $8,000 to $5,500, a 31% decline in a single day. Ethereum fell from $200 to $120, a 40% drop. Imagine this: Bitcoin plunging 31% in one day, Ethereum dropping 40%, and the declines of various altcoins being even more devastating, with multiple times the losses everywhere. No project in the entire crypto space was spared; that’s how the 312 incident was born.

The market’s psychological collapse that day was unimaginable. A few still fantasized about the bottom, some borrowed money to go long, hoping to recover losses, but most had already given up completely. Everyone was shouting that the crypto space was finished, that Bitcoin was going to zero.

On March 13th, even more despairing things happened. Bitcoin rebounded to $6,200 but then fell again to $3,800, a 38.7% drop. Ethereum rebounded to $145 but then dropped to $89, a 38.6% decline. By then, over 90% of people in the crypto space had basically collapsed. For those trading derivatives, it became a form of relief—whether going long or short, everyone got liquidated, losing everything, but feeling a sense of release. Everyone relaxed a bit. The horror of the 312 incident is that it was not just a price crash, but a complete breakdown of psychological defenses.

Looking back at 312 now, it’s like watching a financial disaster movie. Those who experienced it understand how crazy the volatility in crypto can be. For newcomers, the 312 incident is a permanent warning—never overestimate your ability to handle risk. If you’re interested in learning more about crypto history or want to see the current market situation, you can check out the price trends of main coins like BTC and ETH on Gate, and compare the differences between then and now.