Major cryptocurrencies, including Bitcoin, Ethereum, XRP, and Dogecoin, experienced a notable surge on Wednesday, reflecting a broader risk-on sentiment across financial markets just before the Thanksgiving festivities. This uptrend was not isolated, as traditional stock markets also concluded the day with gains, buoyed by optimistic labor market figures and expectations of an upcoming interest rate reduction.
Cryptocurrency and Stock Market Dynamics Ahead of Holiday
On November 26, 2025, the cryptocurrency market witnessed a substantial rally, with Bitcoin ascending to an intraday peak of $90,819. This marked a continuation of its robust recovery during the Thanksgiving week. Ethereum impressively surpassed the $3,000 threshold, a level not seen in a week, despite relatively subdued trading volumes. XRP and Dogecoin also recorded increases of 1.42% and 1.58% respectively over the preceding 24 hours. Concurrently, Bitcoin's market dominance slightly decreased to below 58%, and Ethereum's market share settled at 11.8%. Shares of Strategy Inc., a company heavily invested in Bitcoin, observed a 2% rise during regular trading hours. The broader cryptocurrency market capitalization swelled to $3.1 trillion, showcasing a 2.58% growth in a single day. Meanwhile, the stock market mirrored this positive trend, with the Dow Jones Industrial Average climbing 0.67% to 47,427.12, the S&P 500 advancing 0.69% to 6,812.61, and the Nasdaq Composite rising 0.82% to 23,214.69. This positive momentum was partly attributed to favorable labor market data, as initial jobless claims for the week ending November 22 fell to 216,000, surpassing expectations. Market participants also maintained high hopes for a 25 basis point rate cut in December, as indicated by the CME FedWatch tool. Notably, the New York Stock Exchange and Nasdaq were scheduled to close for Thanksgiving. In the cryptocurrency analysis sphere, expert Ali Martinez highlighted that The Puell Multiple, an indicator monitoring Bitcoin miners' revenue, stood at 0.67. Historically, readings below 0.50 have often signaled Bitcoin cycle bottoms. Adding to this, Michaël van de Poppe, another prominent crypto commentator, suggested that Bitcoin is at a pivotal juncture, with a potential break above $92,000 by month-end confirming the recent dip below $80,000 as a cycle's lowest point.
The synchronized upward movement in both cryptocurrency and traditional stock markets prior to Thanksgiving illustrates a prevailing appetite for risk among investors. This trend is further fueled by encouraging economic indicators and the anticipation of supportive monetary policies. However, the persistence of an 'Extreme Fear' sentiment in the Crypto Fear & Greed Index reminds us that underlying anxieties still linger, urging investors to remain vigilant despite the festive rally. This period highlights the intricate interplay between macro-economic factors and the volatile nature of digital assets, making informed decision-making paramount for navigating future market fluctuations.