On October 20, 2025, the crypto market noticed a significant flash crash that despatched Bitcoin down 20%, and altcoins suffered between 50% and 80% losses consequently. Experiences from knowledge trackers present that greater than $19 billion in leveraged positions had been liquidated consequently. This led to the most important liquidation occasion within the crypto trade up till that time, resulting in comparisons and speculations that this may very well be a repeat of the notorious COVID-19 crash of 2020.
What It Means For Bitcoin And Crypto If This Is A Repeat Of 2020
One of many key crypto gamers who has identified that the present cycle may very well be much like that of 2020 is crypto analyst Rekt Fencer. Fencer took to X (previously Twitter) to share with their over 330,000 followers, a side-by-side chart displaying the 2020 efficiency in contrast to what’s occurring now in 2025.
To place this in perspective, again in 2020, the crypto market suffered a flash crash the place the Bitcoin worth fell by greater than 50%, and the altcoin market adopted. This was a results of the COVID-19 lockdowns that had been introduced world wide in a bid to curb the unfold of the virus.
In response to the shutdowns, the inventory market had crashed, taking Bitcoin and the crypto market down with it. This led to over $1.2 billion in every day liquidation, which on the time was essentially the most important liquidation in crypto historical past. Nevertheless, this determine now pales compared to the over $19 billion in liquidations that had been recorded final week.
Regardless of the disparity within the liquidation volumes, crypto analyst Rekt Fencer believes that this might result in a repeat of what occurred after the COVID-19 crash. Again then, the bounce from the crash had been fast. By 2021, one yr later, your entire crypto market had risen to new all-time highs.
Taking that efficiency and utilizing it to map out the Bitcoin and crypto market efficiency after final week’s crash, it could imply that the market is prepared for one more bull run. It might additionally put the market on the backside of the bull run, that means that the Bitcoin worth is way from its all-time excessive worth.
Rekt Fencer explains that “Historical past is about to repeat itself” and “The true transfer begins when everybody thinks it’s over.” Thus, one other explosive rally may very well be proper on the horizon, if this isn’t the beginning of a bear run.
