On October 20, 2025, the The crypto market saw a major flash crash causing Bitcoin to fall by 20%, and altcoins suffered between 50% and 80% losses as a result. Reports from data trackers show that more than $19 billion in leveraged positions were liquidated as a result. This led to the largest liquidation event in the crypto industry to date, leading to comparisons and speculation that this could be a repeat of the infamous COVID-19 crash of 2020.
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 contacted X (formerly Twitter). part with their more than 330,000 followers, a side-by-side graph showing 2020 performance compared to what’s happening now in 2025.
To put this into perspective, in 2020 the crypto market suffered a sudden crash with the Bitcoin price falling by more than 50%, and the altcoin market followed suit. This was a result of the COVID-19 lockdowns announced around the world in an effort to curb the spread of the virus.
In response to the shutdowns, the stock market had crashed, sending Bitcoin and the crypto market down with it. This led to over $1.2 billion in daily liquidations, which at the time was the most significant liquidation in crypto history. However, this figure now pales in comparison to the more than $19 billion in liquidations recorded last week.
Despite the disparity in liquidation volumes, crypto analyst Rekt Fencer believes this could lead to a repeat of what happened after the COVID-19 crash. At the time, recovery from the crash had been rapid. In 2021, a year later, the entire crypto market had soared to new all-time highs.
By taking that achievement and using it to improve the Bitcoin and crypto market performance After last week’s crash, this would mean that the market is ready for a new bull run. It would also put the market at the bottom of the bull run, meaning the Bitcoin price is far from its all-time high.
Rekt Fencer explains: “History is about to repeat itself” and “The real step begins when everyone thinks it’s over.” So another explosive rally could be in store, if this isn’t the start of a bear run.