Review of the 5th Anniversary of the “312” Incident: The Rise and Fall of the Crypto Market and Its Insights

March 12, 2025 marks the fifth anniversary of the “312” event in the crypto market. Reflecting on March 12, 2020, the price of Bitcoin plummeted from around $8,000 to $3,800, with a single-day drop of over 50%, causing significant market turmoil. Since then, “312” has become an important symbol in the crypto industry, prompting deep reflection within the industry every year on this day. Let us review the significant events and market changes in the crypto market around March 12 each year since 2020.

March 12, 2021

On this day, the price of Bitcoin has rebounded significantly from the low of March 12, 2020, breaking through $58,000 and setting a new all-time high at that time. Market sentiment has shifted from fear to optimism, mainly influenced by the following factors:

• A well-known electric vehicle company announced that it has purchased $1.5 billion worth of Bitcoin and plans to accept Bitcoin as a payment method.
• The US government has signed a $1.9 trillion economic stimulus bill, which has a positive impact on assets like Bitcoin.
• Bitcoin is widely regarded as “digital gold,” and the narrative of hedging against inflation is gradually gaining popularity.
• The fields of decentralized finance (DeFi) and non-fungible tokens (NFT) have begun to rise, driving the prices of ecosystem tokens such as Ethereum upwards.

March 12, 2022

The price of Bitcoin hovers around $40,000, having retreated from the highs of 2021, but still well above the lows of March 2020. The market exhibits the following characteristics:

• Traditional financial institutions are showing increased interest in encryption, and some large banks have begun to hire professionals in the digital asset field.
• Countries like Singapore are beginning to pay attention to the tax issues surrounding NFT transactions, indicating that regulation is starting to catch up with this emerging field.
• Some trading platforms have stated that they will not freeze the accounts of ordinary Russian customers unless compelled to do so, reflecting the impact of geopolitical factors on the crypto market.
• The crypto market has entered a period of adjustment, but emerging fields such as NFTs and GameFi remain active.

March 12, 2023

The price of Bitcoin is around $22,000, and the market is in a bear market cycle. Some significant events occurred during this period:

• The collapse of a well-known bank has sparked turmoil in the global financial market, significantly affecting stablecoins such as USDC.
• The stablecoin issuer commits to using company resources to bridge the liquidity gap, ensuring that the stablecoin is pegged to the US dollar.
• The Central Bank of Russia allows limited purchases of encryption currencies, showing a relatively lenient attitude towards regulation in the crypto market.

March 12, 2024

The price of Bitcoin has surpassed $70,000, setting a new historical high. The market is showing strong upward momentum:

• A well-known investment institution released a report predicting that Bitcoin will reach $150,000 by mid-2025.
• The yield on Germany’s 10-year government bonds reached its highest level since 2023, reflecting changes in the macro economy.

March 12, 2025

The price of Bitcoin has experienced a pullback, dropping below $80,000 and reaching a low of $76,000, with the total liquidation amount across the network reaching $120 million. The market is facing multiple influencing factors:

• The U.S. Securities and Exchange Commission (SEC) has delayed its approval decisions for several crypto market-related products, increasing uncertainty in the market.
• The US February CPI data was significantly lower than expected, affecting the market’s expectations for inflation and monetary policy.
• High leverage trading on a certain trading platform led to a large number of Ethereum long positions being liquidated, triggering market volatility.

It is worth noting that some trading platforms have organized the “312” five-year anniversary event, reflecting on the historical event of the significant decline in the crypto market five years ago. Industry insiders generally believe that while the extreme market conditions of “312” may be difficult to replicate, the lessons from it are still worth being vigilant about. Many investors have stated that this incident made them realize the importance of risk management, especially when using leveraged trading, which requires more caution.

Overall, from the “312” review from 2020 to the present, we can see that the crypto market has experienced significant fluctuations and notable development. Despite the market undergoing cyclical bull and bear transitions, it has shown an overall upward trend. At the same time, we have also observed the profound impact of various factors such as regulation, macroeconomics, and technological innovation on the market. For participants, it is crucial to maintain a risk awareness and a long-term perspective while seizing opportunities.