Exactly four years ago, Bitcoin saw a dramatic drop of nearly 17% in just over 24 hours, creating a stark contrast to the bullish momentum it had been experiencing.
In 2020, Bitcoin was in the midst of a strong recovery after the market crash triggered by the COVID-19 pandemic earlier in the year. Starting at around $7,000 and dipping below $4,000 during the panic sell-off in March, Bitcoin was on track to push past the $20,000 mark. However, as the U.S. Thanksgiving holiday began, a sudden wave of selling ensued. In a matter of hours—from Wednesday morning to Thursday afternoon—Bitcoin dropped from $19,500 to $16,200, a fall of about 17%, which came to be known as the “Thanksgiving Day Massacre.”
Fast-forward to today, and Bitcoin is facing another significant dip, failing to reach its latest target: the $100,000 threshold. While this year’s drop is not as steep or rapid as the one in 2020, it still serves as a reminder of the volatility Bitcoin can experience. Currently, Bitcoin is down around 8%, falling to $91,500 after flirting with the $100,000 mark just days ago.
Despite the current drop, history may provide hope for bullish investors. In the aftermath of the 2020 Thanksgiving plunge, Bitcoin quickly regained its footing, climbing back to nearly $20,000 within just a few days. By December, it surpassed $24,000, and by the end of the year, it was well above $30,000. This strong rally culminated in Bitcoin reaching an all-time high of $65,000 in April 2021. If history repeats itself, the current dip could be followed by another surge in Bitcoin’s price.
