On Wednesday, leading cryptocurrencies rallied alongside stock markets, as investors embraced a more risk-tolerant sentiment in anticipation of the Thanksgiving festivities. The upbeat market mood was reflected across various assets, highlighting the interlinked nature of crypto and traditional markets.
Market Gains Across the Board
Bitcoin led the charge with an impressive increase of 3.71%, reaching a recorded price of $90,739.79. This surge demonstrated Bitcoin’s ongoing recovery, which has characterized the Thanksgiving week. Ethereum, the second-largest cryptocurrency, also performed well, gaining 2.90% to break the critical $3,000 threshold, although trading volumes remained relatively thin.
Other notable performers included XRP, which rose 1.42% to $2.22, and Solana, up by 2.92% at $142.92. Even Dogecoin saw a modest gain of 1.58%, landing at $0.1548.
Despite the positive price movements, Bitcoin’s market dominance dipped below 58%, while Ethereum’s market share fell to 11.8%. This decline indicates a potential shift in market dynamics, as alternative cryptocurrencies begin to gain traction among investors.
Cryptocurrency Insights
A noteworthy highlight from the trading day was the performance of Strategy Inc., a Bitcoin treasury company, whose shares increased by 2% during the regular trading session. In contrast, cryptocurrency liquidations reached approximately $270 million in the past 24 hours, with bearish shorts valued at $192 million being wiped out.
Bitcoin’s open interest rose by 2.38% to $61 billion, indicating growing market participation. Surprisingly, over 67% of top Binance traders were positioned long on Bitcoin, revealing a bullish outlook among key investors, even as the overall market sentiment remained in a state of “Extreme Fear,” according to the Crypto Fear & Greed Index.
Top Gainers in Focus
In the last 24 hours, some standout gainers in the cryptocurrency landscape included Merlin Chain (MERL), which skyrocketed by an astonishing 144.55% to $0.5261. Brett (Based) also gained momentum with a 20.13% increase to $0.01919, while Dash enjoyed a 19.72% bump to $69.59.
With the global cryptocurrency market capitalization climbing to $3.1 trillion—a 2.58% increase in just one day—the market reflects a robust environment for digital assets.
Stocks on a Winning Streak
The stock market followed suit, extending its winning streak on Wednesday. The Dow Jones Industrial Average increased by 314.67 points, or 0.67%, closing at 47,427.12. The S&P 500 rose 0.69% to settle at 6,812.61, while the tech-heavy Nasdaq Composite jumped 0.82% to finish at 23,214.69.
Positive labor market data fueled this bullish sentiment, with initial jobless claims dropping to 216,000 for the week ending November 22, surpassing expectations. Furthermore, traders’ anticipations for a potential December rate cut remained high, with an 84% likelihood of a 25 basis point decrease being priced in, according to the CME FedWatch tool.
It’s important to note that the New York Stock Exchange and Nasdaq will be closed on Thursday in observance of Thanksgiving.
BTC’s Recent Movements—A Possible Turning Point
Analysts are weighing the significance of recent Bitcoin price movements. Widely followed trader Ali Martinez pointed out that the Puell Multiple, which tracks Bitcoin miners’ daily revenue against their yearly average, currently sits at 0.67. Historically, this metric has indicated cycle bottoms whenever it dips below 0.50.
Michaël van de Poppe, another respected market analyst, emphasized that if Bitcoin can break above $92,000 by the end of the month, it could confirm the recent dip below $80,000 as a true cycle bottom. This prediction could reshape traders’ strategies and expectations in the evolving market landscape.
Photo Courtesy: Marc Bruxelle on Shutterstock.com
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