Cryptocurrency Rally Ahead of Thanksgiving: Bitcoin, Ethereum, and Dogecoin Rise

As Thanksgiving approaches, leading cryptocurrencies have experienced a significant rally, ignoring recent declines in the stock market. Traders are showing increased risk appetite, which is reflected in the price movements of major cryptocurrencies.

Cryptocurrency	Gains +/-	Price (Recorded at 7:45 p.m. ET)
Bitcoin BTC/USD	+4.49%	$96,156.90
Ethereum ETH/USD	+9.94%	$3,652.83
Dogecoin DOGE/USD	+4.81%	$0.4026

What Happened: In the early hours of trading, Bitcoin began to climb, achieving an intraday high of $97,357. This surge marks a rebound from the recent downturn that temporarily halted its climb toward the $100,000 threshold.

Ethereum, the second-largest cryptocurrency by market cap, outperformed Bitcoin with an impressive gain of nearly 10% over the last 24 hours, pushing its weekly returns to 17%, significantly higher than Bitcoin’s 1.34%.

During this time, over $261 million worth of positions were liquidated across the crypto market, with bearish positions accounting for $182 million in losses. This indicates a shift in traders' sentiment as they embraced more aggressive positions.

Speculative interest in the market is on the rise, as evidenced by a 14.62% increase in Open Interest for Ethereum and a 2.95% rise for Bitcoin. This suggests that more traders are locking their money into unsettled derivatives contracts, showing increased confidence in price rises.

Additionally, the ratio of traders taking long positions on Bitcoin compared to those betting on declines has increased, reinforcing the market's positive outlook. The Crypto Fear & Greed Index has also indicated a rise in sentiment, moving from 75 to 77, signifying growing investor enthusiasm.

Top Gainers in the Last 24 Hours

Some of the top performers in the cryptocurrency market include:

Cryptocurrency	Gains +/-	Price (Recorded at 7:45 p.m. ET)
Ethereum Name Service (ENS)	+64.56%	$36.36
Uniswap (UNI)	+22.28%	$13.25
Ethena (ENA)	+20.16%	$0.719

The global cryptocurrency market capitalization is now approximately $3.34 trillion, following a gain of 4.18% in the last day.

Market Sentiment and Economic Context

Meanwhile, traditional stock market investors are locking in gains before the Thanksgiving holiday. The Dow Jones Industrial Average decreased by 138.25 points, or 0.31%, closing at 44,722.06. The S&P 500 slipped 0.38% to finish at 5,998.74, while the Nasdaq Composite fell by 0.60% to end at 19,060.48.

Additionally, the Personal Consumption Expenditures (PCE) price index, which the Federal Reserve uses to gauge inflation, saw an increase in October but matched expert predictions. Traders are now pricing in a 64.7% chance of a 0.25% rate cut in next month's Federal Open Market Committee (FOMC) meeting, up from 59.4% a day earlier.

Markets in the U.S. will be closed on Thursday in observance of Thanksgiving.

Analyst Insights

According to the on-chain analytics firm CryptoQuant, Bitcoin's market cycle is not yet in the "Extreme Bull" phase, suggesting there is still room for growth. They caution, however, that historical trends indicate that price corrections will follow these increases, providing opportunities for investors who missed initial buying opportunities.

This month has been notably positive for Bitcoin, which has surged 34% in November. The CryptoQuant Cycle Indicator suggests that the peak of the current cycle is still ahead.

Renowned cryptocurrency analyst Ali Martinez has set a mid-term price target for Ethereum at $6,000, while also projecting a longer-term target of $10,000. Another notable analyst, Rekt Capital, remarked that for Ethereum to reach new highs not seen since late 2021, it needs to secure a weekly close above the $3,700 resistance level.

As traders and investors navigate these market dynamics, the outlook remains optimistic as crypto continues to demonstrate resilience in the face of broader market fluctuations.

cryptocurrency, Bitcoin, Ethereum