Bitcoin News Today: Holiday Closure Diverts Capital to Crypto, Spiking Dollar Volatility

The U.S. dollar faced heightened volatility in late November 2025 as the Thanksgiving holiday disrupted traditional market dynamics, shifting investor focus to cryptocurrency markets and exacerbating liquidity concerns in equities. While U.S. stock exchanges, including the New York Stock Exchange and Nasdaq, closed on Thanksgiving, crypto markets remained active, with Bitcoin (BTC) surged past $90,000 amid a broader crypto recovery. The divergence in market behavior underscored the evolving interplay between fiat and digital assets, as the dollar's relative strength became increasingly tied to the performance of alternative investments.

The Thanksgiving closure created a unique environment for volatility. U.S. bond markets and over-the-counter trading also shut down, while international exchanges in Shanghai, Hong Kong, and London stayed open according to market reports. This contrast amplified liquidity constraints in dollar-denominated assets, as traders pivoted to crypto. Bitcoin's rebound followed a turbulent November that erased its 2025 gains, with the asset hitting a low of $81,000 before stabilizing. Analysts attributed earlier declines to waning institutional interest and uncertainty around Federal Reserve policy, particularly as speculation mounted over a potential third rate cut in December.

The S&P 500, meanwhile, faced its own challenges. Tightening liquidity conditions, driven by large Treasury settlements and reduced trading volumes during the holiday week, raised concerns about downside risks. A $150 billion outflow from the market during the low-volume period heightened volatility expectations, with settlement dates aligning with sharp equity swings in recent weeks. This tension extended to Bitcoin, which saw a 36% correction from its October peak of $126,199, reflecting broader market jitters.

Institutional activity in crypto derivatives also signaled shifting dynamics. Nasdaq's International Securities Exchange proposed quadrupling position limits on options for BlackRock's Bitcoin ETF (IBIT), citing surging demand from market makers and institutions. The move, pending SEC approval, aimed to deepen liquidity and enable larger, lower-risk allocations, a sign that Bitcoin was increasingly treated as a macro asset rather than a speculative play.

However, risks lingered. Unverified reports of a $15 billion Bitcoin security breach linked to quantum computing research triggered sharp price swings and reignited concerns over digital asset safety. BI DeFi responded by launching a Web3 yield platform to provide stable earning tools amid the turmoil. Meanwhile, Texas's historic $5 million investment in the BlackRock Bitcoin Trust highlighted growing institutional acceptance, even as MSCI's potential review of MicroStrategy's index eligibility threatened to trigger further selling according to market analysis.

As the Thanksgiving holiday unfolded, Bitcoin stabilized near $87,700, supported by ETF inflows and cautious optimism. Traders noted that a monthly close above $90,000 could signal a bullish reversal, though liquidity pressures and settlement-driven volatility remained near-term headwinds. The U.S. dollar's trajectory, in turn, hinged on whether crypto markets could sustain their recovery while traditional assets navigated holiday-driven uncertainties.