The crypto market is rallying, with Bitcoin climbing 2.7 percent to over $110,700.
The rally was fueled by a presidential pardon for the Binance founder “CZ.”
The pardon for Changpeng Zhao sent the price of BNB soaring by over 5 percent.
The cryptocurrency market was firmly in rally mode on Thursday, with Bitcoin climbing back toward $111,000 in a powerful rebound that was fueled by sizable gains in the US stock market and a stunning presidential pardon for the founder of the crypto exchange Binance, Changpeng “CZ” Zhao.
The broad-based rally marks another day of sharp, back-and-forth price action in a market that has been defined by extreme volatility in recent weeks.
A presidential pardon sparks a relief rally
The primary catalyst for the market’s improved tone was the unexpected news of President Trump’s pardon for the Binance founder.
The move, which suggests a continuing friendly regulatory environment for the crypto industry in the US, had an immediate and powerful impact.
The price of BNB, the native token of the Binance ecosystem, surged by more than 5 percent on the news.
The positive sentiment spread across the broader crypto sector, with Bitcoin rising 2.7 percent over the past 24 hours to $110,700, and other major tokens like Ether, DOGE, and ADA all posting gains in the 2 to 3 percent range.
Crypto-related stocks, which had suffered heavy losses in Wednesday’s sell-off, also bounced back strongly, with the Bitcoin miner Hut 8 climbing 7.3 percent after tumbling 17 percent in the previous session.
A classic whipsaw pattern continues
The powerful rebound comes just one day after a sharp decline that had pushed Bitcoin’s price below $107,000.
That drop, in turn, had followed a steep rise on Tuesday that had seen the leading cryptocurrency climb as high as $114,000.
This volatile, back-and-forth action is a classic whipsaw pattern, a market condition that often punishes traders who try to chase the trend.
All eyes on a pivotal inflation report
With the pardon now digested, the market’s focus is turning to the next major potential catalyst: the US government’s September Consumer Price Index (CPI) report, which is still set to be released on Friday morning despite the ongoing government shutdown.
This will likely be the last piece of important economic data that the Federal Reserve will see before its crucial rate-setting meeting next week.
The market is currently in full expectation of a 25-basis-point cut at that meeting, with another quarter-point reduction priced in for the final meeting of the year in December.
The CPI report will be the final and most important test of that conviction.
