March 2020 mini crash practice run for something bigger?

The March 2020 crash really caught my attention. It was one of the biggest shake-ups in the crypto world since 2017, and I can’t help but think something similar might be on the horizon. So what went down in March 2020? In a nutshell, we saw a massive drop in major stock indexes, real estate, and crypto prices, all triggered by the pandemic restrictions. Within a month, from February 14 to March 14, 2020, the S&P 500 dropped about a third, going from 3400 to 2300. Bitcoin took a hit too, losing around half its value, dropping from 10,000 to 5,000 bucks. But then things bounced back fast; by May 1, 2020, BTC was back up to 9,000 and stuck around 10,000 for most of the summer. Now, we’re looking at another potential economic crash, with the S&P 500 possibly falling over 50%. This could be due to sky-high P/E ratios and also the rising oil prices. Does history repeat itself? And if it does, what can we take away from that mini crash in March 2020?

At that time, global governments responded to the crisis with a near-universal policy of confronting an event that almost no one could cope with: the "new normal." Today is clearly very different. This is no longer just an energy crisis (which some countries may not see as a threat at all), but also an old moral and humanitarian crisis that is being resuscitated for the sake of "business."

I don't think the current downtrend is similar to the March 2020 crash. This is slow while the one back then was a sharp fall which happened within hours. I vividly remember that day because I had open positions. Also, everything was going down. From Gold, oil to stocks and crypto unlike right now where oil has been moving in the opposite direction. The only other time I can compare the 202 crypto mini crash is the FTX saga crash or even that Luna crush. The price is usually very volatile and starts bouncing back up within about 24 hours

I remember one of the main narratives was then: "Bitcoin is already too old and well proven itself to disappear."

Or "it had died many times" already, but that narrative is flaw in the beginning as Bitcoin is not a bubble that once it was burst, there's no way that it can re-born itself like the Tulip mania. But if you talk about mini crash in March 2020, don't you forget that we are in the Covid-era that time. It was the first time that we have heard it in March 2020. I remember that I was about to go out with my friends but they said that it seems everything has been lock down by the the police. So I don't know if there will be as big as that kind of human event that can affect all the markets, maybe a war that we are witnessing could be one as their is collateral damage, those countries that don't have oil reserves or at least oil that won't last for months if the war is going to continue in the long run.

I don't buy the idea of bringing external markets into Bitcoin affair in the name of correlation, and Bitcoin is enough to provide anyone whatever they need to study it and predict what could happen. If S&P500 is used for Bitcoin and Bitcoin is used for S&P500, what sense is that? Is that not distracting? Fine correlation happens, but there is no perfect correlations, which is why it's good to focus on the prevailing asset in question and do the thorough weighing based on its own data. As it is, it's no news that Bitcoin will bounce back, as it only needs a few time to fulfill its bearish course, period. It's own history will repeat itself, and it has always been.

Not even sure how it could be attributed to covid, but I suppose it makes sense that all the other things you mentioned contributed, in tandem. Then again, if I'm honest I don't remember it in the least. Perhaps that's why you call it a mini-crash, one simply shouldn't remember mini-crashes. Don't think the Terra, FTX, et al fiasco saw this as a rehearsal -- now that I can't forget.

I was active too. I was right in the two important aspects. Firstly: such times are very good for investing. Secondly: it is best to stick in the gradual step by step buying tactic in which the biggest amount of funds are hold for the moments when undervaluation of the asset is grown very strong (because there is always a risk that my calculations are very imprecise). I was wrong in the four important aspects. Firstly: I had not enough funds in my trading account (there was one day - March 13, 2020 - when the prices moved so quickly that I had not enough time to transfer my funds from my bank account to my trading account). Secondly: I had not enough capital in the form that is liquid enough to transfer quickly into money. Thirdly: I did not put much more additional buying orders strongly below market price (the bottom fishing is much more effective in crisis times). Fourthly: I bought Bitcoin, not altcoins. (Few months later one good economist (Meelis Tikerpuu) said me in private conversation that "The Bitcoin's time is long over" hinting that it is naive to hope strong undervaluation from the asset with main narrative "Already too old and well proven itself to disappear"). What were your strengths and weaknesses (mistakes) in investing during March, 2020 crisis?

I do remember that period, it was around 3.6k at the bottom if I am not wrong, and in 2021 we have peaked at near 68k if I am not mistaken as well. That is something that does happen when we are not at the bull run yet and we should be careful about it. We are at the same place yet again, once more, and we should be careful. We are in a bear market right now and a crash is not impossible. Something that sees the price drop another 30-40% from this point in a month or two is not impossible and if we are not careful and do not have our stop loss ready, then we are going to be hurt. Be careful when you are buying bitcoin during this time, it's low now so it sounds like a good time to buy and usually we are right about that, still it's best to be careful.

You think Bitcoin price depends on the economy market capitalization? Are you aware that in the same historical records, most top stock asset had also lost their top positions and Bitcoin moved upwards and vice versa after it losses it falls in price. That is just a significant that denotes how volatile Bitcoin price is. Bitcoin has also recently recently crashed above 50℅ since the current ATH which effect was not based on the economy factor but the ratio of the high liquidation with a massive sells of traders before the rebound. Of course that can not be instigated to be a course of the economy nature. Even in the recent war of the Iran, Israel and the US, it course has really affected the economy system with high level of inflation with the cost of oil very high but while many thought Bitcoin price was going to fall at that course, perhaps it has even been holding a substantial value with an average of $70K while the economy is crumbling.

It often rhymes but it doesn't mean it has the same echoes. Well, I think the October 2025 crash was something like that or it was more brutal because it did a sudden crash that's more brutal compared to that of March 2020 because it liquidated more investors. In my opinion, what I learn from that crash is that you don't have to panic at all just because the masses do, the best thing you could do is trust your instincts and HODL as if you're waiting for something to happen and it did by reaching ATH by 2021.

If there is something new and bigger, I believe it will happen again. That crash was unforgettable, it's not only the Bitcoin market affected by that, but it's the global market, everything!!! I'm glad I was able to buy the bottom on that for Bitcoin at that time. So, already lesson learned for me, if that time will happen again, I know the drill already.

2020 Crash because covid that basically destroy everything but this one hit different, high oil prices are a known recession predictor. If businesses can't afford to move goods then we are doomed, why I say different because covid was a global hit while this one because geopolitical issue that hard to predict unless you are the president of united states itself. When pandemic hit we already know this will be a long game but today issue more like with speech issue we can go dump and pump overnight

History does repeat itself and for the March 2020 crash, I don’t see a similar thing going to happen now. That crash really shook the world and we all thought everything was coming to an end that time. The global market may be showing signs of something similar but until now they’re not still enough reasons to think what happened 6 years ago will happen now again. The whole world was coming crashing and not how we’re feeling now does it felt that time. So, history can repeat itself but nothing is going to be repeated here to copy the 2020 crash. It was the whole world crashing then and not just Bitcoin.