Cryptocurrency markets saw significant momentum heading into the Thanksgiving holiday, a time historically known for unpredictable market shifts. Bitcoin (BTC) briefly surged past $97,000, sparking expectations that it could soon break the $100,000 barrier. However, it pared some gains and settled around $95,500 during early Thursday trading in Asia.
Bitcoin rose by 3.3% in the last 24 hours, maintaining strong performance as the holiday weekend looms. Historically, Thanksgiving has been a time when the market sees sharp reversals, but Bitcoin’s positive price action helped lift the broader digital asset space. Ether (ETH) was a standout performer, climbing 7%, while XRP and BNB Chain each gained 6%, and Dogecoin (DOGE) increased by more than 5%.
A recent CoinDesk analysis pointed to a rise in futures trading and on-chain activity around Ether, suggesting that traders are bracing for more volatility in anticipation of Ethereum’s upcoming updates. Ethereum has seen an uptick in transaction revenue, fees, and the creation of new wallets, signaling increased network engagement compared to the quieter months between May and September. In addition, Ethereum futures open interest surged to a new record of 6.32 million ETH, valued at over $27 billion, highlighting growing institutional and retail interest.
Meanwhile, decentralized finance (DeFi) tokens also saw notable increases. Aave (AAVE) and Uniswap (UNI) both rose by 9%, while meme coins like Pepe (PEPE) and Mog (MOG) jumped over 8%, further demonstrating their correlation with Ethereum’s price action.
Traders at QCP Capital observed a shift in market flows toward Ethereum, with the ETH/BTC pair surging by 13% to 0.0366, recovering from a low of 0.0318 after the U.S. election. “Ethereum is outperforming the broader market,” QCP analysts remarked, noting that while the CoinDesk 20 Index only saw a modest gain of 0.5%, Ethereum continues to gain traction.
The broader bullish sentiment is also influenced by the rally in U.S. equity markets, spurred by President-elect Trump’s nomination of Scott Bessent as Treasury Secretary. Bessent, known for his market-friendly approach, has helped lift investor confidence, contributing to a broader risk-on sentiment in markets, including cryptocurrencies.
Bessent has been a vocal supporter of cryptocurrencies, emphasizing their role in promoting financial freedom, particularly among younger investors who have become increasingly engaged in digital asset markets.
