A Review of the Crypto Market’s “312”: The Five-Year Journey from Panic to Recovery

On March 12, 2025, the crypto market experienced another significant fluctuation, which inevitably reminded people of that terrifying day five years ago. On March 12, 2020, the price of Bitcoin plummeted from around $8,000 to $3,800, with a single-day decline of over 50%, resulting in the evaporation of hundreds of billions of dollars in market capitalization and countless leveraged traders facing liquidation.

Since then, “312” has become an important symbol in the crypto market. Every year on this day, practitioners review the past and reflect on their experiences. Let’s sort out the significant events and market changes in the crypto market on “312” day over the following years.

March 12, 2021: Rebound and Innovation

On this day, the price of Bitcoin has rebounded significantly from its low in 2020, breaking through $58,000 and setting a historical high at that time. Market sentiment has shifted from panic to optimism, mainly influenced by the following factors:

• A certain electric vehicle company announced a large-scale purchase of Bitcoin and plans to accept it as a payment method.
• The U.S. government has launched a large-scale economic stimulus plan, indirectly driving up the prices of assets such as Bitcoin.
• The narrative of Bitcoin as “digital gold” and a hedge against inflation is gradually gaining popularity.
• Decentralized finance (DeFi) and non-fungible token (NFT) markets have begun to rise, driving up the prices of related ecosystem tokens.

March 12, 2022: Adjustment and Diversification

The price of Bitcoin fluctuates around $40,000, which, although lower than the peak of the previous year, is still well above the low point of 2020. The market exhibits the following characteristics:

• Traditional financial institutions are beginning to actively engage in the digital asset sector, indicating an increased interest in encryption.
• Some countries and regions have begun to explore regulatory and taxation issues concerning emerging digital assets such as NFTs.
• Some trading platforms indicate that they will not freeze regular users’ accounts unless required to do so, reflecting the industry’s emphasis on user rights.
• Although the overall market has entered a consolidation phase, emerging fields such as NFTs and gamified finance (GameFi) remain active.

March 12, 2023: Challenges and Resilience

In the year “312”, the price of Bitcoin was around 22,000 USD, and the market was in a bear cycle. However, the challenges faced by the industry also highlighted its resilience:

• The collapse of a large bank triggered turmoil in the global financial market, causing significant impact on certain stablecoins.
• The stablecoin issuing institutions commit to taking measures to maintain the stability of the coin’s value, reflecting the industry’s self-rescue capability.
• Some countries have begun to relax regulations on encryption, such as allowing limited purchases, indicating a change in regulatory attitude.

March 12, 2024: Breakthrough and Expectations

The price of Bitcoin has surpassed $70,000, setting a new historical high, greatly boosting market confidence:

• A well-known investment institution released a report predicting that the price of Bitcoin is expected to reach $150,000 by mid-next year.
• The traditional financial market has also seen some changes, such as the rise in German long-term government bond yields, reflecting the shift in the macroeconomic environment.

March 12, 2025: Volatility and Reflection

The price of Bitcoin has seen a pullback, dropping below $80,000 and hitting a low of $76,000, with a total liquidation amount across the network reaching $120 million. The market has experienced significant volatility again:

• Regulatory authorities have postponed approval decisions for several encryption-related products, increasing market uncertainty.
• U.S. inflation data came in below expectations, affecting market expectations for monetary policy.
• High-leverage traders on a certain trading platform have faced massive liquidations, sparking a renewed discussion on risk management.

It is worth noting that some trading platforms organized the “312” five-year anniversary event, reflecting on this history filled with challenges and opportunities. An industry opinion leader summarized: “Spot holders face the greatest risk of asset depreciation, but leveraged traders may be completely wiped out due to an extreme fluctuation. This is the most valuable lesson the ‘312’ event has taught us.”

Looking back at “312” over the past five years, we can see that while it is difficult to replicate the extreme market conditions of that time, the lessons contained in that day are still worth heeding. Participants in the crypto market take this opportunity every year to review market changes, summarize experiences and lessons, and look ahead to the future of the industry. This attitude of reflection and learning may be the key driving force behind the continuous development of this young industry.