Crypto markets were in rally mode on Thursday, buoyed by significant stock gains, a U.S. presidential pardon for Binance founder Changpeng Zhao, and in anticipation of tomorrow’s crucial reading on September inflation.
In mid-afternoon U.S. trading, bitcoin (BTC) was up 2.7% over the past 24 hours to $110,700, just below the day’s high of $111,100. This movement followed Wednesday’s notable decline that pushed the price below $107,000 after a sharp rise on Tuesday brought BTC as high as $114,000.
This back-and-forth performance is typically referred to as a whipsaw pattern, which often results in losses for those attempting to trade in line with the trend.
The wider crypto sector is also experiencing a rally, with ether (ETH), dogecoin (DOGE), and cardano (ADA) all advancing between 2% to 3%. Notable gainers include solana (SOL) and BNB, both rising over 5% — BNB specifically benefiting from the pardon of Changpeng “CZ” Zhao.
Crypto-related stocks are rebounding after significant losses during Wednesday’s selloff. Bitcoin miner Hut 8 (HUT) has risen 7.3% after a 17% drop the previous session. Coinbase (COIN) and Strategy (MSTR) are each seeing gains of about 2%.
The positive sentiment on Thursday comes after the aforementioned pardon and the recovery seen in U.S. stocks, which also dipped on Wednesday. The Nasdaq has risen by 1% in the hour leading up to the market close.
Looking ahead, despite the ongoing government shutdown, the U.S. is still poised to release the September Consumer Price Index (CPI) report on Friday morning. This is expected to be the last crucial economic data the Federal Reserve will have before its rate-setting meeting next week.
Currently, markets are anticipating that the Fed will lower its benchmark fed funds rate by another 25 basis points at this meeting and another 25 basis points at the final meeting of the year in December.
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