Bitcoin's Tumble to $91K Evokes Thanksgiving 'Massacre' of 2020

Four years ago to the day, bitcoin plunged about 17% in the span of just over 24 hours.

Nov 26, 2024, 8:25 p.m.

The fall of 2020 was an exciting time for crypto, with bitcoin — after beginning the year around $7,000 and plunging to below $4,000 during the March Covid panic — in the middle of a rollicking bull market and appearing set to push through the $20,000 milestone.

Mr. Market had a different idea though and as families began to get together for the U.S. Thanksgiving holiday, a wave of selling took place. Between East Coast Wednesday morning hours and the first football game early afternoon Thursday afternoon, bitcoin plunged from roughly $19,500 to $16,200, a decline of nearly 17%. The action was quickly dubbed the Thanksgiving Day Massacre.

Exactly four years to the day later, bitcoin is seeing another swift decline after failing to surpass another milestone. There are, of course, key differences. First, this year's big number is $100,000, or five times that of four years ago. Second, the decline this time around has been more drawn out and is far less severe (so far) on percentage terms, a drop of just about 8% to $91,500 after nearly taking out $100,000 a few days ago.

The aftermath of 2020 will be encouraging to the bulls. Just four days after the plunge, bitcoin had returned to just shy of $20,000 and by mid-December had soared to a new record high above $24,000. By year-end, the price was above $30,000 on its way to the bull market peak of $65,000 in April 2021.