Crypto Has Little to Celebrate as Bitcoin and Ether See Gloomiest Thanksgiving Ever

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The stock market crash was just the beginning of bitcoin’s problems in 2022, but the volatile and fragile world of crypto has its own undoing.

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Dan Kitwood/Getty Images

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Crypto traders should focus solely on turkey Thursday, as this Thanksgiving marks one of the most disappointing periods in the history of digital assets.

Bitcoin and other cryptocurrencies have endured a brutal year, with the total market capitalization of digital assets falling from nearly $3 trillion in November 2021 to just $830 billion this week. The largest crypto is now changing hands around $16,500, less than a quarter of the way from its all-time high of $69,000 with Ether,
The second largest coin dropped from its 2021 peak of $5,000 to $1,200.

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The broader decline in digital assets initially coincided with that of the stock market as the token fell alongside the S&P 500 and Dow Jones Industrial Average amid a grim macro backdrop of high inflation and rising interest rates.

But the real undoing has come within crypto itself, with the meltdown of stablecoin ecosystem Terra and the collapse of major hedge fund Three Arrows Capital sweeping through the markets in May and June, each leading to new legs on the downside.

The shocking and devastating bankruptcy of crypto exchange FTX earlier this month brought the latest hammer down on bitcoin, hammering prices and raising questions about existential threats from new regulation and a lack of new institutional interest.

The numbers say it all.

Bitcoin is seeing its worst Thanksgiving since 2018 by value, down 65% and 20% month-to-month, respectively. That’s marginally better than 2018’s 68% and 30% respective declines, the worst on record, according to Dow Jones market data.

Ether has fallen 69% and 26% year-to-date and month-to-date respectively through Thanksgiving, the worst performance for the price since 2018, the last “crypto winter” that saw 83% and 35% annual and Losses started in the month.

Based on the market capitalization losses, it is very bad. Year-to-date, bitcoin’s market capitalization is down by $560 billion, with a month-to-month loss of $77 billion. Ether’s market cap declined by $296 billion and $50 billion on a yearly and monthly basis, respectively. These losses are the worst ever in the history of crypto.

Such dramatic declines spark a gloom that could give Black Friday a whole new meaning — so investors should be paying attention to the holiday right now.

Write to Jack Denton at [email protected]

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