Bitcoin’s Slump to $91K Echoes the 2020 Thanksgiving ‘Massacre.’

Four years ago, Bitcoin experienced a sharp fall, dropping nearly 17% in just over a day, marking a memorable moment in the history of the cryptocurrency market.

In late 2020, Bitcoin was in the midst of an exciting bull market. Starting the year under $7,000 and dipping below $4,000 during the March COVID-19 market panic, Bitcoin had made a strong recovery and was on the brink of breaking the $20,000 barrier. As Thanksgiving approached, however, a sudden wave of selling hit the market. From Wednesday morning through Thursday afternoon, Bitcoin plunged from about $19,500 to $16,200, a sharp decline that became known as the “Thanksgiving Day Massacre.”

Fast forward to today, and Bitcoin is experiencing a similar drop after failing to break through the $100,000 mark, though the circumstances differ. This year, the key milestone is $100,000—five times the value Bitcoin was chasing in 2020. The current drop is more gradual and, so far, less severe, with Bitcoin falling around 8% to $91,500 after approaching $100,000 just days earlier.

Looking back at 2020, the post-decline recovery was rapid and encouraging for bulls. Just days after the Thanksgiving plunge, Bitcoin bounced back to just under $20,000. By mid-December, it surpassed $24,000, and by the end of the year, Bitcoin had crossed $30,000, eventually reaching its all-time high of $65,000 in April 2021. The strong recovery then offers hope to investors that this recent dip could lead to another rally in the coming months.