Bitcoin (BTC) experienced a modest upswing on Thursday, climbing to around $110,700 during U.S. trading hours, marking a 2.7% increase over the past 24 hours. The price briefly touched a peak near $111,100 before settling slightly lower. This movement followed a volatile few days for the leading cryptocurrency, which saw a sharp drop below $107,000 on Wednesday after reaching as high as $114,000 on Tuesday.
The recent price fluctuations exemplify a whipsaw trading pattern, characterized by rapid reversals that often challenge traders attempting to follow momentum. Such swings can lead to losses among those who enter or exit positions based on short-term trends.
The broader cryptocurrency market also showed gains alongside Bitcoin. Ethereum (ETH) rallied by approximately 2% to $3,842, while Dogecoin (DOGE) and Cardano (ADA) advanced by similar margins, reaching $0.1947 and $0.6406 respectively. Standout performers included Solana (SOL) and Binance Coin (BNB), both surging over 5%. BNB’s rise received additional support following the announcement of a presidential pardon granted to Binance founder Changpeng Zhao.
Crypto-related equities rebounded as well after experiencing steep declines the previous day. Notably, mining company Hut 8 (HUT) rebounded 7.3%, recuperating some losses after a 17% fall on Wednesday. Shares of Coinbase (COIN) and MicroStrategy (MSTR) also rose approximately 2% each.
The improved market sentiment on Thursday coincided with several key developments. The U.S. stock market recorded positive gains, with the Nasdaq composite index up about 1% an hour before the close. Additionally, the pardon of Changpeng Zhao by former President Donald Trump suggests a continuation of a comparatively supportive regulatory environment for cryptocurrency participants in the United States.
Looking forward, investors are preparing for the release of the U.S. Consumer Price Index (CPI) report on Friday morning, which covers inflation data for September. This report will provide crucial insight for policymakers at the Federal Reserve ahead of its upcoming interest rate decision meeting next week. Despite a partial federal government shutdown, the CPI data is expected to be published on schedule.
Market consensus currently anticipates that the Federal Reserve will implement another 25 basis point reduction in the benchmark fed funds rate at the forthcoming meeting, followed by a similar cut at the final December session. These monetary policy moves appear to be priced in as investors digest ongoing economic indicators.
Overall, Thursday’s market activity highlights the ongoing volatility inherent in crypto assets amid macroeconomic developments and regulatory news, while pointing to cautious optimism as key economic data and policy decisions loom on the horizon.
