Crypto markets were in rally mode on Thursday alongside significant gains in stocks, a US presidential pardon for Binance founder Changpeng Zhao and ahead of tomorrow’s key reading on September inflation.
Mid-afternoon trading in the US, bitcoin had risen 2.7% over the past 24 hours to $110,700, a hair off the day’s high of $111,100. The action came after Wednesday’s sharp decline, which had pushed the price below $107,000. Wednesday’s drop came after Tuesday’s sharp rise, which had brought BTC as high as $114,000.
The back and forth action is commonly known as a whipsaw pattern and usually results in emptying the pockets of those trying to trade the trend.
The broader crypto sector is also rallying with ether , and all ahead in the 2%-3% range. Notable outperformers include solana and GDP with advances of more than 5% – BNB gets a boost after President Trump pardoned Binance founder Changpeng “CZ” Zhao.
Crypto-related stocks, which suffered big losses across the board in Wednesday’s selloff, are jumping today. Bitcoin miner Hut 8 (HUT) is up 7.3% after tumbling 17% the previous session. Coinbase (COIN) and Strategy (MSTR) are each higher by about 2%.
The better note on Thursday comes amid the aforementioned pardon of CZ – suggesting a continued friendly regulatory environment in the US – and gains in US stocks, which had also fallen on Wednesday. A little more than an hour before the close, the Nasdaq is higher by 1%.
Looking ahead, the US government – despite the continued shutdown – is still set to release September’s Consumer Price Index (CPI) report on Friday morning. This is likely to be the last piece of important economic data the Federal Reserve will see ahead of its interest rate meeting next week.
Currently, markets are fully expecting the Fed to cut its benchmark fed funds rate by another 25 basis points at this meeting and another 25 basis points at the year’s final meeting in December.
