Bitcoin Reaches Over $97K, Then Falls Back, as Ether and XRP Jump 7%.

Cryptocurrency markets saw a significant uptick ahead of the Thanksgiving holiday, a period often marked by unexpected price movements. Bitcoin (BTC) surged above $97,000, sparking hopes of breaching the $100,000 barrier, before retracing to around $95,500 during Thursday’s Asian session.

Bitcoin gained 3.3% in the past 24 hours, primed for a Thanksgiving weekend that historically has experienced swift price corrections. The rally in Bitcoin provided support for other major cryptocurrencies. Ether (ETH) outperformed, climbing 7%, while XRP and BNB Chain both rose by 6%, and Dogecoin (DOGE) increased by over 5%.

A CoinDesk analysis highlighted that ETH-linked futures and on-chain activity had been ramping up, indicating traders are bracing for potential volatility tied to Ethereum updates. The past month has seen notable increases in Ethereum’s revenue, fees, wallet activity, and on-chain volumes compared to the slower pace between May and September. Additionally, the total open interest in ETH futures contracts reached a record high of 6.32 million ETH, worth more than $27 billion, signaling strong bullish sentiment in the market.

DeFi tokens Aave (AAVE) and Uniswap (UNI) surged 9%, while meme coins like Pepe (PEPE) and Mog (MOG) saw gains over 8%, reflecting their correlation with Ether’s price movements.

QCP Capital analysts noted that capital flows are increasingly favoring ETH, as evidenced by a 13% jump in the ETH/BTC trading pair, which reached 0.0366 from a low of 0.0318 post-election. “ETH is outperforming the broader market, with the CoinDesk 20 Index rising only 0.5%,” QCP stated.

QCP attributed this shift in sentiment to Wall Street’s record highs following President-elect Trump’s choice of Scott Bessent as Treasury Secretary. Bessent, known for his role in the famous Soros bet against the British pound, is seen as a pro-market figure who could moderate policies, adding to the overall positive mood and driving optimism in financial markets.

Bessent, who has expressed his belief that cryptocurrency is about “freedom” and has long-term viability, is viewed as an advocate for crypto’s staying power, especially as it gains popularity with younger generations.