Cryptocurrency markets surged ahead of the Thanksgiving holiday, continuing their trend of unpredictability during this time of year. Bitcoin (BTC) initially soared above $97,000, generating speculation that it might soon breach the significant $100,000 level. However, the gains were short-lived, with Bitcoin pulling back to just below $95,500 as trading continued into Thursday morning in Asia.
Bitcoin posted a 3.3% increase over the past 24 hours, supported by a broader market rally. Despite historical volatility during the Thanksgiving period, which often brings sudden reversals, Bitcoin’s upward momentum helped lift the entire digital asset sector. Ether (ETH) was one of the top performers, jumping 7%, while XRP and BNB Chain each gained 6%, and Dogecoin (DOGE) rose more than 5%.
A detailed CoinDesk analysis pointed to a surge in activity surrounding Ethereum, with futures and on-chain metrics suggesting traders are positioning for potential price movements. The Ethereum network has seen a rise in revenue, fees, and new wallet creation, reflecting a period of higher activity compared to the quieter months earlier in the year. Furthermore, open interest in Ethereum futures has skyrocketed to an all-time high of 6.32 million ETH, worth over $27 billion, indicating strong investor confidence and expectations for future price increases.
DeFi tokens also saw notable gains, with Aave (AAVE) and Uniswap (UNI) climbing 9%, while meme coins like Pepe (PEPE) and Mog (MOG) jumped by more than 8%. These altcoins often show a strong correlation with Ethereum’s price action, benefiting from the increased bullish sentiment in the broader crypto market.
Traders at QCP Capital noted a shift in market flows, with Ethereum taking center stage. The ETH/BTC trading pair surged 13% to 0.0366, up from its post-election low of 0.0318. “Ethereum is leading the charge,” QCP analysts said, noting that the CoinDesk 20 Index only rose 0.5% in comparison.
The overall positive market sentiment is also bolstered by a rally in traditional U.S. equities, following President-elect Trump’s nomination of Scott Bessent as Treasury Secretary. Bessent, known for his investment expertise and market-friendly policies, has helped lift investor sentiment across various asset classes, including cryptocurrencies.
Bessent, who has expressed his belief in crypto’s role in promoting financial freedom, particularly among younger generations, also highlighted the growing acceptance of digital assets as part of the broader investment landscape.
