Crypto markets were in rally mode on Thursday, alongside big gains in stocks, a US presidential pardon for Binance founder Changpeng Zhao, and ahead of tomorrow’s key reading on September inflation.
By mid-afternoon, in American exchanges, Bitcoin was up 2.7% in the past 24 hours at $110,700, down from the day’s high of $111,100. This action follows Wednesday’s sharp decline that pushed the price below $107,000. Wednesday’s drop came after Tuesday’s sharp rise which took BTC as high as $114,000.
The back-and-forth action is commonly known as the whipsaw pattern and usually results in emptying the pockets of those attempting to trade the trend.
The broader crypto sector is also recovering, with ether , And all ahead in the 2-3% range. Notable outperformers include Solana and BNB with advances of over 5% – BNB received a boost after President Trump pardoned Binance founder Changpeng “CZ” Zhao.
Crypto-related stocks, which suffered heavy losses across the board during Wednesday’s sell-off, are rebounding today. Bitcoin miner Hut 8 (HUT) climbs 7.3% after falling 17% the previous session. Coinbase (COIN) and Strategy (MSTR) are each about 2% higher.
Thursday’s better tone comes amid CZ’s aforementioned pardon — which suggests a still favorable regulatory environment in the U.S. — and gains in U.S. stocks, which had also fallen on Wednesday. A little over an hour before the close, the Nasdaq is up 1%.
Looking ahead, the US government – despite the continued shutdown – is still set to release the September Consumer Price Index (CPI) report on Friday morning. This is likely the last significant economic data the Federal Reserve will see before its rate-setting meeting next week.
Currently, markets expect the Fed to cut its benchmark rate by another 25 basis points at this meeting and another 25 basis points at its final meeting of the year in December.
