Crypto Market's Deja Vu: Is a 2020-2021 Rebound on the Horizon?

The cryptocurrency market recently experienced a significant flash crash on October 20, 2025, triggering widespread speculation about whether history is set to repeat the dramatic recovery seen after the 2020 downturn. Investors and analysts alike are scrutinizing the current market dynamics for parallels to past cycles.

A Swift Descent: The October 2025 Flash Crash

The recent market turbulence saw Bitcoin plummet by 20%, while altcoins faced even steeper losses, ranging from 50% to 80%. This abrupt decline led to the liquidation of over $19 billion in leveraged positions, marking it as the largest such event in crypto history to date. This substantial market shake-up has inevitably drawn comparisons to the infamous COVID-19 crash of 2020, prompting discussions about potential future trajectories.

Echoes of the Past: Analyst Points to Bullish Potential

Crypto analyst Rekt Fencer has been a prominent voice highlighting the similarities between the current market cycle and that of 2020. Fencer shared a comparative chart with over 330,000 followers, illustrating how the present performance mirrors the 2020 crash. Back then, widespread COVID-19 lockdowns led to a stock market downturn, dragging Bitcoin down by over 50% and triggering $1.2 billion in liquidations. However, this crash was followed by a rapid rebound, culminating in the entire crypto market reaching new all-time highs by 2021. If the market follows a similar pattern to its 2020 recovery, Fencer suggests that the crypto market may be poised for another bull run, currently sitting at the bottom of the cycle, with Bitcoin's price far from its historical peak. Echoing a sentiment of resilience, Fencer remarked that "History is about to repeat itself" and "The real move starts when everyone thinks it's over," hinting at an impending explosive rally should this not signal the onset of a prolonged bear market.