Key Takeaways:
- Thanksgiving historically meant a bullish phase for Bitcoin
- Crypto investors risk more losses this time.
- Food shortages and food inflation hurt all consumers.
YEREVAN (CoinChapter) – As millions of Americans prepare for traditional Thanksgiving dinners on Nov 24, we can’t help but wonder what crypto investors will be thankful for in 2022.
The cryptocurrency market has dipped 70% since the last turkey dinner, letting go of nearly $2 trillion in its collective valuation. Not to mention, even the cranberry sauce could startle shoppers at the checkout counter.
Additionally, if many crypto enthusiasts used Thanksgiving 2021 to veer their gran into a crypto investment, the sentiment doesn’t sound as convincing this time. Will Thanksgiving 2022 defy the bullish tradition?
Bitcoin Booms after Thanksgiving — Historically
Crypto4Everybody, an independent market analyst, noted that Bitcoin typically undergoes a bullish phase after Thanksgiving.
From the last 9 Thanksgiving, counted since 2012, the Bitcoin price more or less bottomed out at this date 7 times (green arrows). So there were nearly no lower prices afterward until Bitcoin reached the next Top.
commented the analyst while citing the chart below.
In addition, Crypto4Everybody noted that the pandemic-related Bitcoin price drop is “not countable,” given it coincided with sharp declines across the crypto and stock market.
What about this year? The global financial crisis surely doesn’t fall in line with the previous ten years. Will the analyst ignore 2022 stats as well?
Meanwhile, 2022 cheated crypto investors out of profit in more than one way and came with food inflation and potential shortages.
Politics or food shortage?
FOX News called the food crisis ‘Thanksgiving with Biden,’ with a 43% increase in egg prices, a 34% jump in butter value, 25% increase in flour price. Thanksgiving Turkey will make an appearance at a 17% price jump as well, next to the 15% potato inflation.
Also read: Bitcoin (BTC) Price Just Reversed and $15K Seems Imminent
As CoinChapter reported previously, Bitcoin has developed a correlation with the risk-on assets throughout the year. The correlation that could work in favor of digital assets in a bullish market backfired as stocks plummeted.
As a result, Bitcoin and the rest of the crypto assets lost over 70% in combined valuation. However, the causes of the initial plunge are not yet resolved.
The ripples of the FTX implosion tear through the market. The war in Ukraine rages on. Tensions rise in the east between China and Taiwan, as well as North Korea and Japan. The energy crisis and the food shortage have yet to continue, which means the crypto investors have to get ready to tighten their purse strings this Thanksgiving.
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