Crypto Markets Today: Bitcoin Front-Runs a Wider Recovery as Year-End Rally Speculation Grows

Bitcoin and ether extended their rebound on Thursday as momentum from a strong tech-led rally in U.S. equities lifted sentiment across digital assets. Bitcoin advanced to $91,700 and ether crossed $3,030, following Wednesday’s surge in stocks such as Alphabet and Nvidia that helped the Nasdaq log its best four-session stretch since May.

Risk appetite remained concentrated in the market’s largest asset. Bitcoin’s 5.4% gain over the past 24 hours outperformed nearly all major tokens, reflecting a continued preference for high-liquidity names. CoinMarketCap’s “altcoin season” indicator reinforced that trend, dropping to 22/100 from its October peak of 67/100.

Volatility expectations eased sharply as bitcoin’s 30-day implied volatility gauge, BVIV, slid to 50%, reversing last week’s surge to 65%. Derivatives traders positioned for a potential year-end push, building a sizable call-condor structure between the $100,000 and $118,000 strikes with $6.5 million in premium—an expression of growing optimism for a possible “Santa rally.” Still, consistent call overwriting near $100,000 and soft downside hedging demand kept implied volatility in check.

Spot buying appeared to be the primary driver of Thursday’s move, with bitcoin open interest holding steady. In contrast, altcoin derivatives saw a jump in leveraged positioning, particularly in ether, solana and zcash, according to Coinalyze data.

Trading volumes were largely in line with earlier in the week before easing into the U.S. Thanksgiving holiday. While altcoins broadly lagged bitcoin, several outperformed on Thursday: SKY (formerly MKR) jumped 10% from last week’s low, and DASH, ETHFI and AVAX each rose between 6.7% and 7.7%. However, weakness persisted in pockets, with ENA and TAO slipping more than 2%.

Marketwide RSI readings show crypto edging toward overbought territory, with AVAX, SPX and PENDLE already flashing elevated levels—raising the risk of a short-term pullback if demand does not keep pace.

Ultimately, the direction of the broader market remains tied to bitcoin’s next major move. A decisive break above the downtrend that began in October could open a path back toward $100,000 and catalyze broader altcoin participation. But if bitcoin retraces this week’s gains and drifts back toward the low-$80,000 range, thin liquidity may exacerbate downside pressure in the altcoin sector.