Cryptocurrency markets were in bullish mode on Thursday ahead of a big rally in stock prices, the US President’s pardon for Binance founder Zhao Changpeng, and tomorrow’s key September inflation reading.
Bitcoin in mid-afternoon US trading BTC$110,401.92 It rose 2.7% in the past 24 hours to $110,700, just off the day’s high of $111,100. The move comes after a sharp decline on Wednesday that sent the price below $107,000. Wednesday’s decline followed a sharp rally on Tuesday that saw BTC rise to $114,000.
This back-and-forth movement is commonly known as a whipsaw pattern and usually empties the pockets of those trying to trade on the trend.
The broader crypto sector is rising as well, including Ether. Ethereum$3,878.74, doge$0.1963 and ADA$0.6478 Leading in the 2% to 3% range. Notable high achievers include Solana. sol$191.73 and BNB BNB$1,121.57 Advance payments of 5% or more — BNB gains momentum after President Trump pardoned Binance founder “CZ” Zhao Changpeng.
Cryptocurrency stocks, which suffered heavy losses across the board during Wednesday’s plunge, are rebounding today. Bitcoin miner Hut8 (HUT) is up 7.3% after falling 17% in the previous session. Coinbase (COIN) and Strategy (MSTR) are each about 2% higher.
Thursday’s tone comes amid the aforementioned CZ pardon (suggesting a continued friendly regulatory environment in the US) and a rally in US stocks, which were down on Wednesday. A little more than an hour before market close, the Nasdaq was up 1%.
Looking ahead, the U.S. government is scheduled to release its Consumer Price Index (CPI) report for September on Friday morning, despite the ongoing shutdown. This will likely be the last major economic indicator the Fed will review before next week’s interest rate meeting.
Market expectations are now high that the Fed will cut the benchmark federal funds rate by another 25 basis points at this meeting, and another 25 basis points at its final meeting of the year in December.
