Bitcoin Flash Crash Déjà Vu: Are We Primed for Another 2020-2021 Style Mega-Rally?
Markets shudder as Bitcoin experiences violent liquidation cascade—echoes of 2020's fateful flush before the historic bull run.
The Pattern Repeats
Flash crashes clean house. Weak hands fold while institutional buyers accumulate at discount prices. The same algorithmic liquidations that crushed leveraged positions in 2020 created the springboard for Bitcoin's 500% explosion.
Market Mechanics Unchanged
Derivatives markets still over-levered, spot demand still climbing, and macroeconomic conditions even more favorable than during the last cycle. The Federal Reserve's balance sheet has ballooned another 40% since Bitcoin's last all-time high.
History Doesn't Repeat—But It Rhymes
Technical indicators flashing identical divergence patterns from the 2020 bottom formation. Exchange reserves draining at accelerated rates while long-term holder accumulation hits record pace. Because nothing says 'sound monetary policy' like buying the dip on a volatile digital asset while traditional finance burns.
The setup looks frighteningly familiar. Whether this repeats or diverges depends on whether you believe in patterns or prefer trusting central bankers with your financial future.
What It Means For Bitcoin And Crypto If This Is A Repeat Of 2020
One of the key crypto players who has pointed out that the current cycle could be similar to that of 2020 is crypto analyst Rekt Fencer. Fencer took to X (formerly Twitter) to share with their over 330,000 followers, a side-by-side chart showing the 2020 performance compared to what is happening now in 2025.
To put this in perspective, back in 2020, the crypto market suffered a flash crash where the Bitcoin price fell by more than 50%, and the altcoin market followed. This was a result of the COVID-19 lockdowns that were announced around the world in a bid to curb the spread of the virus.
In response to the shutdowns, the stock market had crashed, taking Bitcoin and the crypto market down with it. This led to over $1.2 billion in daily liquidation, which at the time was the most significant liquidation in crypto history. However, this figure now pales in comparison to the over $19 billion in liquidations that were recorded last week.
Despite the disparity in the liquidation volumes, crypto analyst Rekt Fencer believes that this could lead to a repeat of what happened after the COVID-19 crash. Back then, the bounce from the crash had been rapid. By 2021, one year later, the entire crypto market had risen to new all-time highs.
Taking that performance and using it to map out the Bitcoin and crypto market performance after last week’s crash, it would mean that the market is ready for another bull run. It would also put the market at the bottom of the bull run, meaning that the bitcoin price is far from its all-time high price.
Rekt Fencer explains that “History is about to repeat itself” and “The real MOVE starts when everyone thinks it’s over.” Thus, another explosive rally could be right on the horizon, if this isn’t the start of a bear run.
