Bitcoin’s Fall to $91K Sparks Memories of the 2020 Thanksgiving ‘Massacre.’

Exactly four years ago today, bitcoin saw a dramatic 17% drop in just over 24 hours, sending shockwaves through the market.

Back in the fall of 2020, the crypto space was experiencing intense excitement. Bitcoin, which had started the year below $7,000 and briefly dipped under $4,000 during the March COVID-19 panic, was now in the middle of a bullish surge, pushing toward the $20,000 level. However, as the U.S. Thanksgiving holiday approached, a wave of selling hit the market. Between Wednesday morning and Thursday afternoon—just ahead of the Thanksgiving Day football games—bitcoin dropped from around $19,500 to $16,200, a near 17% drop, quickly becoming known as the “Thanksgiving Day Massacre.”

Fast forward to today, and bitcoin is again experiencing a sharp pullback, though this time it’s after the cryptocurrency failed to break the $100,000 threshold. There are some clear differences, however. For one, this year’s key milestone is $100,000, which is five times the value of the $20,000 target from 2020. The current decline has been more gradual, and much less severe, with bitcoin falling just about 8% to $91,500 after almost reaching $100,000.

The aftermath of the 2020 correction could offer some comfort to bullish investors. Within days of the Thanksgiving plunge, bitcoin quickly recovered to just below $20,000. By mid-December, it surged past $24,000, and by the end of the year, it had crossed $30,000. Bitcoin’s price eventually reached its peak of $65,000 in April 2021, illustrating the market’s ability to rebound and continue its upward trajectory after brief corrections.