The "3.12 tragedy" in the currency circle: In 24 hours, the assets returned to zero, and countless people went bankrupt

The "3.12" in the cryptocurrency circle refers to the cryptocurrency market crash that occurred on March 12, 2020. The impact is significant!

First, from the perspective of the market

1. The degree of collapse is tragic
Bitcoin plummeted from $8,000 to $5,500, down 31%, Ethereum plummeted from $190 to $120, down 37%, altcoins fell even more, some by more than 90%, and the amount of liquidation on the whole network was as high as $3.28 billion, with more than 110,000 liquidators.

2. Market panic intensifies
The sharp drop in a short period of time triggered extreme panic among market participants, and investors rushed to sell their cryptocurrency, causing prices to fall further and form a vicious circle.

3. Expose market vulnerabilities
It shows the vulnerability and instability of the cryptocurrency market in the face of external shocks, and the market's ability to resist risks is weak and susceptible to macroeconomic and other factors.

Second, from the perspective of investors

1. Profound risk education
For investors, it is an extremely profound risk education. Let people realize the high risk of investing in the currency circle, and it is difficult for even experienced investors to fully predict and control the extreme changes in the market.

2. Leverage risk is highlighted
The high leverage in this incident has left many investors with no money, clearly demonstrating the huge risks of leveraged trading in extreme market conditions, and reminding investors to use leverage carefully.

3. Reflection on investment strategy
It prompts investors to reflect on their investment strategies, such as whether they are too concentrated in investment, whether there is a lack of risk hedging mechanism, etc., and also makes everyone realize the importance of capital management and risk control in cryptocurrency investment.

Third, from the perspective of industry development

1. The industry reshuffle is accelerating
Some projects and investors with weak strength and poor anti-risk ability have been eliminated, which is conducive to the integration and optimization of resources in the industry and promotes the development of the industry in a healthier and more mature direction.

2. Promote industry change
It exposes the problems in the regulatory and technical aspects of the cryptocurrency market, and promotes the improvement and perfection of the industry in terms of regulatory compliance and technical security.

3. The long-term impact is limited
In the long run, the "3.12" incident did not hinder the development of the cryptocurrency market, but to a certain extent, laid the foundation for the subsequent bull market, and the market gradually recovered and ushered in new development opportunities after experiencing short-term turbulence.