The U.S. stock market's three major indices closed lower ahead of Thanksgiving, while Ethereum soared over 10% and Bitcoin gained 4%. Here's what's driving the cryptocurrency rally and whether this marks an optimal entry point for investors.
U.S. Economy Shows Resilient Growth Amid Mild Inflation Uptick
Revised data confirms the U.S. economy grew at a steady 2.8% annual rate in Q3 2024, maintaining strong momentum heading into Q4. Key economic indicators reveal:
- Core PCE Inflation: Rose to 2.3% annually (from 2.1% in September)
- Unemployment Claims: Dropped to 213,000 (from revised 215,000)
- Durable Goods Orders: Increased slightly below expectations
Peter Cardillo, Spartan Capital's Chief Market Economist, notes:
"The mild inflation uptick remains controlled, paving the way for potential 25-basis-point rate cuts in December. The Fed will likely proceed cautiously given tariff policy uncertainties."
Ethereum Outperforms with 10% Rally
ETH's impressive surge from $3,252 to $3,684 highlights:
- Growing capital rotation from BTC to ETH
- Heightened derivatives market confidence
- Still 35% below its 2021 ATH of $4,868
👉 Why Ethereum's current rally differs from past cycles
Thanksgiving Trading: Thin Volumes May Amplify Swings
With U.S. markets closing Thursday and shortened Friday sessions, investors should note:
- Expected lower trading volumes
- Potentially exaggerated price movements
- Increased volatility risks in crypto markets
Key Crypto Market Indicators (November 2024)
| Metric | Change |
|---|---|
| Bitcoin | +4% |
| Ethereum | +10% |
| Top-10 Altcoins | Positive |
FAQs: Timing the Crypto Market
Q: Is now a good time to enter crypto markets?
A: While ETH/BTC show strength, consider dollar-cost averaging given expected holiday volatility.
Q: What's driving ETH's outperformance?
A: Combination of BTC profit-taking, growing DeFi activity, and anticipation of upcoming protocol upgrades.
Q: How might Fed policy affect crypto?
A: Potential rate cuts could maintain liquidity support, but tariff uncertainties may cause intermittent risk-off periods.
👉 Essential risk management strategies for crypto investors
Risk Disclosure
Cryptocurrency investments carry substantial risk of capital loss due to extreme volatility. Conduct thorough research and never invest more than you can afford to lose.