Review of the brutal market on March 12, 2020 in the cryptocurrency sector

On March 12, 2020, the cryptocurrency sector experienced the largest black swan event in history, with 95% of investors facing liquidation on that day.

March 8, 2020

Ethereum plummeted from $250 to $210, a drop of 17%; Bitcoin fell from $9,200 to $8,300, a drop of 10%. Although there was a decent rebound momentum at the time, the sudden crash caused many to panic.

March 9, 2020

The U.S. stock market announced its first circuit breaker, and global markets fell again. Ethereum dropped from $210 to $190, a decline of 10%; Bitcoin fell from $8,400 to $7,700, a drop of 8%. Two consecutive days of sharp declines led to jubilation among short sellers, and almost all short positions were liquidated.

March 10 to March 11, 2020

After two days of drastic declines, the market entered a consolidation phase. Many believed that the worst was over and even began to boldly open long positions.

Now, less than a month away from March 12, history seems to be repeating itself in a different way. In this decline, Bitcoin performed relatively steadily, but the plunge of altcoins was more severe than ever, and contract leverage was completely wiped out. This indicates that the market is preparing for the next bull market, and the door to the bull market is about to open again for investors.

However, market changes are always filled with uncertainty. In recent years, the massive emergence of altcoins has led to severe capital dispersion, making widespread bullish markets increasingly difficult to achieve. Therefore, investors need to be more cautious when choosing sectors. Some altcoins may never rise again and will ultimately exit the historical stage, while others may become favored by capital and create significant profits with the help of capital.

From the current market trends, this round of liquidation may have already been completed. After the rapid liquidation during the Spring Festival, it is highly likely that a wave of upward trends will follow. Perhaps this is the last major market movement in the current bull market, and opportunities are about to arise. Are investors ready?