Ether and BNB saw stronger gains in the past 24 hours leading up to morning trading hours in Asia, while the broader cryptocurrency market saw a price rebound.
As of 11:15 a.m. Thursday in Hong Kong, Ether is trading at $2,739, up 6% in the past 24 hours, according to The Block’s ether price page. However, the world’s second-largest cryptocurrency has yet to regain its January price levels, when it reached above $3,700 at one point.
“ETH’s stronger move is likely driven by Cboe filing for SEC approval to allow staking in the 21Shares Ethereum ETF,” Presto Research Analyst Min Jung said.
Cboe’s 19b-4 form to the U.S. Securities and Exchange Commission to amend the 21Shares’ ether ETF was posted Wednesday. The filing came after the U.S. securities regulator declared “SEC Crypto 2.0” last month, where it vowed to push “sensible” regulation on crypto, largely expected to be friendlier than its past actions under Gary Gensler.
“One of the biggest knocks on ETH ETFs has been their inability to stake, so if this gets approved, it could change the game,” Jung said.
Binance's token, BNB, posted the strongest gains among the top 30 cryptocurrencies, moving up 12% to around $710. The cryptocurrency was one of the few tokens to show price gains on Wednesday while the wider market struggled.
Rachael Lucas, crypto analyst of BTC Markets, saw the BNB price gain as a “technical bounce.”
“The token found a price bottom on Feb 6 after wicking down to $500 due to liquidation-driven selling,” Lucas said. “Given BNB’s historical price action, traders likely saw the $500 level as a key accumulation zone, and once broader market sentiment improved, it fuelled further upside.”
Meanwhile, Presto analyst Jung noted that the new listings of memecoins like TST and CHEEMS on Binance, the world’s largest crypto exchange, might have caused the surge along with its former CEO Changpeng Zhao promoting the BNB chain on his social media.
Bitcoin rose 2.2% to trade above $97,500, while it briefly reached above the $98,000 level earlier in the day.
The wider cryptocurrency market showed a 3.2% gain in the past 24 hours, according to The Block data, while the GMCI 30, measuring the top 30 cryptocurrencies, posted a higher increase of 4.6%.
The market had reacted negatively to the latest U.S. consumer price index (CPI) data released on Wednesday, which showed consumer prices growing a higher-than-expected 0.5% on a monthly basis, the largest jump in two years. This has led the market to expect the Federal Reserve to delay its interest rate cut for an extended period, according to CNBC.
“The initial CPI reaction was sharp, but markets bounced back as investors took a more measured approach, realizing more data is needed to confirm the inflation trend,” Jung said.
BTC Markets's Lucas attributed today’s market recovery to trading bots reacting to the perceived stability in macroeconomic conditions.
“Algorithmic trading plays a significant role in these rapid moves, many bots are programmed to react instantly to key words from Jerome Powell, CPI data, and other major economic reports,” Lucas said. “Given the recent liquidation-driven volatility, any perceived stabilization in macro conditions can trigger aggressive buybacks, particularly from these automated strategies.”
Lucas explained that the market appears to be shaking off tariff-related fears and digesting the latest CPI data, as prices are seen recovering without a standout bullish catalyst. The quick rebound seen in large-cap cryptocurrencies indicates stronger investor confidence, according to Lucas.
“Risk assets, including crypto, are reacting positively to stabilization in macroeconomic conditions, and the market may be positioning for the next move higher if liquidity conditions remain supportive,” Lucas said.
Jung of Presto also said that news headlines on U.S. President Donald Trump saying that Russia's Vladimir Putin agreed to talk about ending the Ukraine war also added to the risk-on sentiment among investors.
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