Four years ago today, bitcoin experienced a sharp drop of approximately 17% within a little over 24 hours.
The fall of 2020 was a pivotal moment for the crypto market, with bitcoin having started the year around $7,000, then crashing below $4,000 during the March COVID-19 panic. By late November, the cryptocurrency was in the midst of a strong bull run, inching closer to the $20,000 milestone. However, the market had other plans. As families began gathering for the U.S. Thanksgiving holiday, a wave of selling took over. Between Wednesday morning on the East Coast and the early afternoon of Thanksgiving Thursday, bitcoin plummeted from roughly $19,500 to $16,200, marking a nearly 17% drop. This event quickly became known as the Thanksgiving Day Massacre.
Fast forward to today, and bitcoin is once again witnessing a significant decline, this time after failing to break through the $100,000 mark. While the situation echoes the 2020 event, there are some key differences. First, the price point at issue this time is $100,000, a value five times higher than the one in 2020. Second, the current decline has been more gradual and far less severe, with bitcoin only falling about 8% to $91,500, after briefly nearing $100,000 just days ago.
For bulls, the aftermath of the 2020 crash offers some optimism. Just four days after that Thanksgiving drop, bitcoin had rebounded to just below $20,000. By mid-December, it surpassed $24,000 and by the end of the year, it was well above $30,000. The bull run eventually peaked at $65,000 in April 2021, further reinforcing the resilience of the market after corrections.
