Bitcoin rose to its highest level since mid-September on Friday, fueled by seasonal factors as well as overall supportive comments from Federal Reserve Chairman Jerome Powell on Thursday.
Powell said in Congressional testimony that the Fed has no intention of banning cryptocurrencies. This answer came in response to a question from House Representative Ted Budd.
Some analysts also noted that while October is generally a bullish month for digital assets, September has historically been a bearish period for the sector.
Ulrik K., founder of crypto asset hedge fund ARK36. “The digital asset market is benefiting from both seasonal impact as well as generally positive market fundamentals,” Lyke said.
“Q4 has often seen strong performance and the expectation that the trend will continue this year can become a self-fulfilling prophecy. It is possible that we will see new all-time highs in Q4, especially in the case of on-chain data.” In Bitcoin, a strong bull market indicates the potential to continue.
He cited Powell’s comments on Thursday as a factor. of bitcoin Positive price action.
The largest cryptocurrency is up 9% in the past at $47,742 to reach a high of $48,000. If the gains are sustained, bitcoin will be on pace to post its biggest daily percentage gain since mid-June.
Smaller coins Ether and XRP, which move in tandem with bitcoin, were up 10% at $3,294% and 8.2% at $1.0299, respectively.
Joseph Edwards, head of research at Enigma Securities in London, also cited spiking volumes on crypto derivatives exchanges as a possible driver of the move. Derivatives trading often affects spot prices in the bitcoin markets.
This story has been published without modification in text from a wire agency feed.
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