The crypto market staged a rebound on Thursday, with bitcoin and ether powering higher as risk appetite returned following a tech-driven surge in U.S. equities. Bitcoin climbed to $91,700 while ether advanced to $3,030, extending momentum from Wednesday’s rally led by Alphabet and Nvidia, which helped the Nasdaq notch its strongest four-day run since May.

Market participants continued to favor bitcoin over lower-liquidity altcoins. BTC’s 5.4% jump outpaced 18 of the 20 largest cryptocurrencies, underscoring the flight toward relative stability. CoinMarketCap’s “altcoin season” gauge echoed this trend, dropping to 22/100 from October’s 67/100 peak.

Volatility expectations also eased. Bitcoin’s 30-day implied volatility measure, BVIV, slipped back to 50%, unwinding nearly all of last week’s spike to 65%. Derivatives sentiment pointed toward renewed optimism, with traders deploying a sizable call-condor spread between the $100,000 and $118,000 strikes—$6.5 million in premium—signaling appetite for a potential year-end “Santa rally.” Still, consistent call overwriting around $100,000 and lighter demand for downside protection kept implied volatility muted.

Spot buying appeared to drive the move higher, as bitcoin open interest remained stable relative to price action. Altcoin derivatives, however, told a more speculative story: leverage-driven open interest climbed sharply for ether, solana and especially zcash, according to Coinalyze.

Trading activity held steady through midweek before slowing ahead of the U.S. Thanksgiving holiday. Despite lagging bitcoin overall, select altcoins showed notable strength. SKY (formerly MKR) jumped 10% from last week’s lows, while DASH, ETHFI and AVAX posted gains between 6.7% and 7.7%. Not all tokens joined the rally, as ENA and TAO slipped more than 2%.

Momentum indicators also raised caution flags. Marketwide RSI readings are edging into overbought territory, with AVAX, SPX and PENDLE already firmly stretched—suggesting potential vulnerability if volumes fail to hold.

Ultimately, the trajectory of altcoins hinges on bitcoin’s next decisive move. A break above the downtrend that has capped prices since October could open the door to a push toward $100,000 and broader market follow-through. But renewed weakness into the low-$80,000 range would likely pressure altcoins disproportionately amid still-thin liquidity conditions.