Bitcoin, XRP stage pre-Thanksgiving rally as market sentiment improves

BTC-USD -0.37% XRP-USD +0.28% ETH-USD -0.15%

The crypto market attempted a modest recovery ahead of Thanksgiving as the total market cap rose 3.37% in the last 24 hours to $3.09 trillion at the time of writing.

Bitcoin (BTC) rose more than 4% in a day to finally rally above the $90,000 price mark after a week. Ethereum (ETH) rose 5% to similarly surpass the $3,000 mark after a week. XRP also rose as high as $2.25, up 3% in a day.

Related: Thanksgiving could throw a big surprise for crypto investors

Unlike previous days, crypto liquidations are not hitting billions of dollars. Over the last 24 hours, positions worth $300 million have been wiped out with short positions accounting for more than $220 million, as per the onchain analytics platform CoinGlass.

Though the Crypto Fear and Greed Index still indicates an "extreme fear" sentiment within the trading community, the metric has risen from 10 a few days ago to 15 at the time of writing. It means the market sentiment has improved.

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Crypto analyst issues cautious warning

However, there is no need to rejoice too soon as the rally could be short-lived.

When BTC recently recovered from a low of around $81,000 to above $87,000, crypto analyst Nic Puckrin attributed the surge to a growing hope for a rate cut in December.

“As we head into the Thanksgiving holiday, markets are on a knife’s edge as December rate cut expectations yo-yo dramatically, in a way we rarely see."

He said the market could see further upside in the short term if the market remains positive, but any optimism in risk assets is "tenuous at best."

Though remarks from senior Fed officials have boosted hopes for a rate cut the next month, there is no economic data to support this, he added.

"And what’s clear is that the FOMC finds itself at one of the most divided times in its history. As such, no outcome can be certain until the big day itself."

The Fed's decision will decide whether the market will witness a Santa rally or a Santa dump toward the end of the year.

At the time of writing, BTC was trading at $89.868.29, ETH at $3,022.63, and XRP at $2.23.

Solana (SOL) rose more than 5% in a day to trade at $143.56. It is a remarkable surge ahead of the the network's gathering.

Solana builders and investors will gather at the Solana Breakpoint in Abu Dhabi during Dec. 11-13, where they will explore key strategic and operational concerns at the annual developer and ecosystem conference.

This story was originally published by TheStreet on Nov 26, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.