On October 20, 2025, the crypto market experienced a significant flash crash that caused Bitcoin to plunge by 20%, with altcoins facing losses between 50% and 80%. Data trackers reported that over $19 billion in leveraged positions were liquidated during this event. This resulted in the largest liquidation event in the crypto sector to date, prompting comparisons and speculations that it might mirror the notorious COVID-19 crash of 2020.
Implications for Bitcoin and Crypto if This Mirrors 2020
One prominent crypto figure, analyst Rekt Fencer, has highlighted that the current market cycle may resemble that of 2020. Fencer shared a side-by-side chart with over 330,000 followers on X (formerly Twitter), illustrating the performance of 2020 compared to the present situation in 2025. Share
To put this into context, during the 2020 flash crash, Bitcoin’s price dropped by more than 50%, leading to a significant decline in the altcoin market. This was triggered by the global lockdowns imposed to mitigate the virus’s spread.
Following these lockdowns, the stock market also crashed, which in turn pulled Bitcoin and the crypto market down. This period saw over $1.2 billion in daily liquidations, marking it as the largest liquidation in crypto history at that time. However, this figure is now dwarfed by the $19 billion in liquidations recorded last week.
Despite the stark difference in liquidation amounts, analyst Rekt Fencer suggests that we could witness a repeat of the events following the COVID-19 crash. Historically, the recovery was swift, with the entire crypto market reaching new all-time highs by 2021.
Using that historical performance to forecast the Bitcoin and crypto market trajectory after last week’s crash suggests a potential upcoming bull run. This could indicate that the market is at the bottom of the bull cycle, meaning Bitcoin’s price still has a considerable distance to cover to reach its previous all-time high.
Rekt Fencer asserts that “History is about to repeat itself,” explaining that “The real move starts when everyone thinks it’s over.” Consequently, another explosive rally might be on the horizon, unless this marks the beginning of a bear market.
