Bitcoin Surges Above $97K Before Pullback: Ethereum and XRP Lead Market Gains

Bitcoin (BTC) saw a dramatic overnight rise, briefly exceeding $97,000 before pulling back to $95,500 on Thursday morning. The spike triggered renewed discussions about Bitcoin’s potential to reach the $100,000 milestone. This movement comes ahead of the Thanksgiving holiday, a period historically associated with significant volatility in the cryptocurrency market.

While Bitcoin’s upward momentum led the charge, other cryptocurrencies such as Ethereum (ETH), XRP, and BNB followed suit with impressive gains. Ethereum, in particular, outperformed the broader market with a 7% surge, while XRP and BNB rose 6%, and Dogecoin (DOGE) added over 5%.

Ethereum’s Momentum Signals Renewed Optimism

Ethereum’s price surge aligns with a broader trend of increased network activity. Recent data highlights significant growth in Ethereum-related metrics, including:

• On-Chain Activity: New wallet creations and transaction volumes have risen sharply, showing greater network utilization.
• Revenue and Fees: The protocol’s monthly revenue has seen a noticeable uptick, pointing to robust demand for decentralized applications (dApps) and services.
• Futures and Options: The open interest in Ethereum perpetual and standard futures contracts reached a record 6.32 million ETH (worth over $27 billion), reflecting strong expectations for price appreciation among traders.

These developments suggest Ethereum’s ecosystem is far from stagnant, dispelling claims that ETH is losing relevance. Notably, the ETH/BTC pair surged by 13%, signaling Ethereum’s strengthening position relative to Bitcoin.

Thanksgiving Crypto Trends and Historical Insights

The Thanksgiving holiday has historically been a dynamic period for crypto markets. For instance:

• Volatility: Previous Thanksgiving weekends have seen sharp price movements in both directions, driven by increased trading activity and market sentiment shifts.
• Social Media Hype: Speculation around milestone prices, such as Bitcoin reaching $100K, adds to the volatility as traders attempt to capitalize on the momentum.

This year, optimism surrounding President-elect Donald Trump’s nomination of Scott Bessent as Treasury Secretary has further bolstered risk-on sentiment.

Broader Market Dynamics: Risk Appetite Surges

The rally in cryptocurrencies coincides with record highs in equity markets. Scott Bessent, a macro investor and nominee for Treasury Secretary, is perceived as market-friendly. His potential to moderate Trump’s economic policies, particularly regarding tariffs, has fueled optimism across traditional and crypto markets alike.

Bessent’s pro-crypto stance adds another layer of positivity. In a recent interview, he described cryptocurrencies as a symbol of freedom and highlighted their appeal among younger investors.

Altcoins and DeFi Tokens Join the Rally

In addition to Bitcoin and Ethereum, other altcoins experienced significant gains:

• DeFi Tokens: AAVE and UNI surged by 9%, supported by their connection to Ethereum’s performance.
• Memecoins: PEPE and MOG saw increases of over 8%, acting as high-beta plays tied to Ethereum’s momentum.

Read more: What is DeFi? Guide to Decentralized Finance

Read more: What Are Altcoins? A Complete Guide to Bitcoin Alternatives

The total value locked (TVL) in Ethereum-based applications rose to $65 billion, reaching levels last seen in mid-2022. Liquid staking protocol Lido accounts for over $32 billion of this, with other notable contributions from Aave and EigenLayer.

Outlook: Will Bitcoin Break $100K?

Bitcoin’s journey toward $100,000 remains a focal point for traders and investors. While recent price action indicates strong resistance at this psychological barrier, the underlying market dynamics, including rising institutional interest and robust trading volumes, suggest the potential for continued upward movement.

However, traders should remain cautious. The Thanksgiving holiday’s history of sudden dumps serves as a reminder of the crypto market’s inherent volatility. Additionally, on-chain data shows that liquidity remains uneven, potentially exacerbating price swings in the coming days.

Conclusion

As Bitcoin, Ethereum, and other major cryptocurrencies continue to rally, the market’s optimism is underpinned by both macroeconomic factors and network-specific metrics. Ethereum’s resurgence in activity, coupled with Bitcoin’s steady climb, highlights the resilience of the crypto ecosystem in the face of evolving narratives.

Traders and investors should watch closely as the Thanksgiving weekend unfolds, with an eye on potential price milestones and the broader implications of Scott Bessent’s nomination for the cryptocurrency market.