Bitcoin’s 2020 Thanksgiving Massacre: Is This Holiday a Turning Point for Cryptocurrency?

Get ready, bitcoin enthusiasts! Recent market movements have some analysts drawing comparisons to the infamous “Thanksgiving Day Massacre” of 2020. But before you panic, let’s take a closer look at what’s really going on.

According to Coinbureau co-founder Nic Puckrin, Bitcoin saw a modest 8% decline this week, dropping from just below $100,000 to $91,500. A far cry from the 17% plunge we saw back in 2020. Back then, that drop actually set the stage for a major rally in the months that followed.

This time around, there are some key differences. Institutional interest from big players like BlackRock and ETFs, as well as larger macroeconomic factors like inflation and interest rates, are playing a bigger role in shaping the market.

On-chain data suggests that whales are starting to accumulate Bitcoin, hinting at a potential rebound. But the big question on everyone’s mind is whether retail investors will follow suit or if we’re in for a deeper correction.

Despite the uncertainty, Puckrin remains optimistic, viewing these Thanksgiving dips as potential “turning points for new highs.” And he’s not alone in that sentiment. Alex Thorn, Galaxy’s Head of Research, also recalls Bitcoin’s 2020 Thanksgiving dip, which was followed by a significant price surge over the next few months.

Recent data shows a dip in social sentiment for major cryptocurrencies, which could be weighing on Bitcoin’s ability to break the $100,000 mark. Analysts at Standard Chartered foresee a possible correction, pinpointing critical support zones at $85,000 to $88,700 before an uptrend resumes.

Looking ahead, the bank has set a year-end price target for Bitcoin at $125,000 and a lofty $200,000 by the end of 2025. So while the market may be experiencing some turbulence now, there’s still plenty of optimism for the future of Bitcoin.

In the world of cryptocurrency, volatility is par for the course. But with a little patience and a long-term perspective, these bumps in the road could very well lead to new highs in the months to come. So hang in there, and let’s see where the Bitcoin rollercoaster takes us next!