Over the last five years, Bitcoin’s holiday behavior has captivated investors and analysts alike. From dramatic plunges to meteoric rallies, Thanksgiving has consistently highlighted the cryptocurrency’s volatility and resilience. Here’s a look at Bitcoin’s Thanksgiving performances since 2020—a rollercoaster of crashes, recoveries, and market-shaping events.
2020’s ‘Thanksgiving Day Massacre’
Thanksgiving 2020 is remembered for the “Thanksgiving Day Massacre,” a sudden 17% price crash from $19,500 to $16,200 within hours. Despite the panic, Bitcoin staged a remarkable recovery, closing the year at $30,000. This event underscored Bitcoin’s sensitivity to market swings while showcasing its rapid rebound potential.
Key Takeaways:
- Volatility: Sharp drops can occur unexpectedly.
- Recovery: Institutional interest and optimism fueled a year-end rally.
2021’s Bullish Leap
In stark contrast, Thanksgiving 2021 saw Bitcoin trading at $58,927—a 214% surge from the previous year’s holiday price. This rally marked Bitcoin’s growing acceptance as a mainstream asset, drawing both retail and institutional investors.
Why It Mattered:
- Institutional Adoption: Increased trust in crypto as an investment.
- Market Confidence: A record-breaking year for Bitcoin’s price.
2022: The ‘Sam Bankman-Fried Turkey’ Year
Thanksgiving 2022 was grim, with Bitcoin trading near $16,200—a 71% drop from its 2021 peak. The collapse of FTX and macroeconomic pressures weighed heavily on the market, highlighting vulnerabilities to external shocks.
Lessons Learned:
- Regulatory Risks: Exchange failures can trigger prolonged downturns.
- Bear Market Realities: Even strong assets face extended slumps.
2023’s Steady Climb
By Thanksgiving 2023, Bitcoin regained momentum, rising from $34,657 to $37,712 in November. Factors like monetary easing and anticipation of spot Bitcoin ETFs drove demand, reinforcing its dominance in crypto markets.
Trends to Watch:
- ETF Impact: Regulatory approvals could unlock new capital.
- Macro Trends: Central bank policies remain a key driver.
2024: The $100K Threshold
As Thanksgiving 2024 approaches, Bitcoin hovers near $100,000, just below its all-time high. Analysts are divided: some predict a repeat of 2020’s crash, while others point to institutional maturity as a stabilizing force.
👉 Will Bitcoin hit $100K in 2024? Track the latest trends here
FAQs
Q: Why does Bitcoin often move sharply during holidays?
A: Lower liquidity and heightened speculative trading can amplify volatility.
Q: How did FTX’s collapse affect Bitcoin in 2022?
A: It triggered a loss of trust and regulatory scrutiny, exacerbating the bear market.
Q: What’s driving Bitcoin’s 2023–2024 recovery?
A: Spot ETF optimism, institutional adoption, and favorable macro policies.
The Bottom Line
Bitcoin’s Thanksgiving history mirrors its broader journey—volatile yet resilient. From crashes to record highs, each year offers lessons for investors navigating this dynamic asset.