Thanksgiving brought a temporary slowdown to the usually frenetic world of cryptocurrencies. While major markets like the stock exchanges were closed for the holiday, the cryptocurrency market exhibited a subdued yet intriguing trend: a potential shift towards an ‘alt season.’
A Thanksgiving Dip, But Hints of a Bull Run:
Bitcoin, the apex cryptocurrency, spent much of the day hovering around the $95,000 mark, experiencing a modest 1.03% decrease to $95,544.73 by 8:00 p.m. ET. Trading volume, however, took a significant hit, plunging as much as 28%. Ethereum followed a similar pattern, initially spiking to $3,640 before settling back into the $3,500 range, ultimately closing down 2.38% at $3,562.08. This dip in Bitcoin and Ethereum’s dominance, however, wasn’t the whole story.
The market share of other cryptocurrencies (altcoins) showed a noticeable increase. This shift, coupled with the notable downturn in the prices of Bitcoin and Ethereum, fuels speculation about the impending ‘alt season’ – a period where altcoins significantly outperform Bitcoin.
Market Indicators Point to Change:
Total cryptocurrency liquidations surpassed $204 million in the last 24 hours, with over $129 million in bullish leveraged positions wiped out. This suggests some investors were caught off guard. Furthermore, approximately $627 million in long positions (bets on price increases) risked liquidation if Bitcoin retraced to $93,000. Bitcoin’s Open Interest (OI), a measure of outstanding derivative contracts, fell 1.03% in 24 hours, while the proportion of traders shorting Bitcoin (betting on price decreases) also rose. Interestingly, the Crypto Fear & Greed Index reflected a sentiment of “Extreme Greed” which moved from 77 to 78 in the same period, indicating a strong bullish market expectation.
Altcoin Outperformers:
While Bitcoin and Ethereum experienced moderate decreases, several altcoins showed significant gains. Algorand (ALGO) led the charge with a remarkable 20.07% increase, reaching $0.3476. The Sandbox (SAND) and Worldcoin (WLD) also performed exceptionally well, rising 8.90% to $0.6567 and 8.79% to $2.81 respectively. The total global cryptocurrency market capitalization slightly contracted by 0.26% to $3.32 trillion, indicating overall market stability.
Analyst Perspectives:
Arthur Azizov, CEO of B2BINPAY, a cryptocurrency payment provider, highlighted that the market is poised for a significant shift, moving from a Bitcoin-dominated phase to an alt season. He pointed to the Altseason Index, which reached 59 on CoinMarketCap, nearing the 75 threshold often considered the trigger for an alt season. Meanwhile, influential cryptocurrency analyst Dom’s Crypto noted that Bitcoin successfully converted the $95,000 resistance level into a support level, foreseeing a quicker-than-expected surge to $100,000.
Looking Ahead:
The Thanksgiving holiday brought a temporary pause, but the cryptocurrency market is ripe with potential. With altcoins gaining traction and analysts predicting significant price movements, the coming days and weeks could bring significant market shifts. The reopening of stock markets on Friday may provide further insights into broader market sentiment and potentially influence the crypto markets.
