Crypto markets were in rally mode on Thursday alongside sizable gains in stocks, a US presidential pardon for Binance founder Changpeng Zhao, and ahead of tomorrow’s key reading on September inflation.
Mid-afternoon in US trading, bitcoin it rose 2.7% in the last 24 hours to $110,700, a hair off the day’s high of $111,100. The action followed Wednesday’s sharp drop that had pushed the price below $107,000. Wednesday’s drop came after Tuesday’s sharp rise that had taken BTC to $114,000.
The back and forth action is commonly known as a buzzsaw pattern and usually results in emptying the pockets of those who try to trade the trend.
The broader crypto sector is also recovering, with ether , and all ahead in the 2%-3% range. Among the artists with the best performance, solana stands out and BNB with advances of more than 5%: BNB received a boost after President Trump pardoned Binance founder Changpeng “CZ” Zhao.
Cryptocurrency-related stocks, which suffered big losses across the board during Wednesday’s sell-off, are rebounding today. Bitcoin miner Hut 8 (HUT) is rising 7.3% after falling 17% in the previous session. Coinbase (COIN) and Strategy (MSTR) are each higher by about 2%.
Thursday’s improved tone comes amid the aforementioned CZ pardon, which suggests a friendly regulatory environment in the US, and US stock gains, which had also fallen on Wednesday. With just over an hour to go before closing, the Nasdaq rises 1%.
Looking ahead, the US government, despite the continued shutdown, is still scheduled to release the September Consumer Price Index (CPI) report on Friday morning. This is probably the last major economic data the Federal Reserve will see before its rate-setting meeting next week.
For now, markets fully expect the Federal Reserve to cut its benchmark federal funds rate by another 25 basis points at this meeting and another 25 basis points at its last meeting of the year in December.
