Looking back on March 12, 2020, starting at 6:30 pm, Bitcoin began to experience a waterfall-like plunge, with a decrease rate of 5% per minute… Four years have passed, holding the two double-edged swords of Wall Street funds and halving narratives, will Bitcoin launch a major offensive and reach new heights in 2023, on March 12 again?
(Prior Summary: Bitcoin Spot ETF has grasped “BTC over 4% circulation”, centralized crisis imminent?)
(Background Supplement: Wall Street crocodile admits mistake? Bill Ackman: Considering buying Bitcoin! Coin price may skyrocket indefinitely)
Bitcoin broke through the $71,000 mark this afternoon, continuing to set new historical highs, bringing unparalleled joy and excitement to the cryptocurrency market. However, while celebrating the market, investors who participated in the market in 2020 still have a deep impression of March 12.
BTC slashed by 50% in less than a day
Looking back on March 12, 2020, starting at 6:30 pm, Bitcoin began to experience a waterfall-like plunge, first dropping from $8,000 to $6,800, then $6,500, $6,000, $5,000, $4,500, with a decrease rate of up to 5% per minute…
This price plummet is closely related to a large number of liquidation of long positions in the contract market. The price in the contract market remained lower than the spot market for a long time, causing confusion and suspicion in the market. While the price continued to decline, in the midst of the panic, it led to a series of forced liquidations. Within 24 hours, the number of people who were forced to liquidate their positions exceeded 100,000. The market at that time can be described as caught off guard, and screenshots couldn’t even keep up with the speed of the decline.
Further reading: Bloodbath! Bitcoin plummeted 42% to reach $3,700, market panic index nears its peak
Bitcoin revenge, it’s never too late after four years
In fact, in 2020, with the expectation of the failure of the US economic stimulus policies, coupled with the panic of the spread of the coronavirus, not only the cryptocurrency market, but also the US stock market experienced rare historical moments of “triggering circuit breakers twice in one week.” Stock markets around the world were affected, with the three major stock indexes in Europe and the Asia-Pacific stock markets experiencing varying degrees of decline. At least 10 countries’ stock indexes triggered circuit breakers…
Recently, after experiencing exciting economic data in January, the outlook for the US economy has become more optimistic. The active economic activities show a strong momentum of recovery. Against this background of economic recovery, inflationary pressures gradually appear, becoming a major challenge for economic policies. Although the Federal Reserve is faced with the challenge of controlling inflation at the 2% policy target, the overall economy and the 2020 environment are very different.
Returning to the cryptocurrency market itself, over the past four years, the cryptocurrency market has experienced numerous ups and downs, from collapse to rebirth. Bitcoin continues to convince the market to believe in it, and with continuous development, various tracks have flourished, and the operation of exchanges has become more secure.
Now, with the approval of the Bitcoin Spot ETF in January, it has attracted a large amount of funds from the traditional financial market. Institutions with assets under management of billions of dollars have opened compliant channels to invest in BTC. In the past two months alone, they have brought in $959 million in funds for Bitcoin, surpassing silver and becoming the world’s eighth-largest asset.
With the two double-edged swords of Wall Street funds and halving narratives in hand, will Bitcoin launch a major offensive and reach new heights on March 12, 2024?
Bitcoin becomes the world’s eighth-largest asset
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