Bitcoin Within minutes on Friday, it posted its biggest daily gain since July. Other digital currencies also rose in a shocking rally that followed the biggest monthly drop since May.
The biggest cryptocurrency rose 9.9 per cent to $47,742 in New York trading after posting a 7.6 per cent fall in September amid concerns over mounting regulatory pressure in China and the US. Ethereum, Litecoin and EOS also jumped, with the Bloomberg Galaxy Crypto Index rising 8.3 percent.
In the third quarter of this year, bitcoin was up 25 per cent despite a fall in September. This compared to a fall of 41 per cent in the last three months.
Traders offered several possible reasons to profit, while noting that fractional markets leave digital assets vulnerable to volatile price swings. Some pointed to comments by Federal Reserve Chairman Jerome Powell early Thursday, while others cited price levels closely watched by technical analysts.
Vijay Iyer, head of Asia-Pacific with cryptocurrency exchange Luno Pte, told Bloomberg, “We may see the beginning of some de-correlation with traditional markets here.”
“Even though it’s too early to say. But that whole narrative that didn’t last last year is probably taking shape. Especially since there’s a lot of uncertainty regarding we Debt limit, dominance of China, etc. Crypto is in its own bull cycle and continues higher,” he said.
Powell told a congressional hearing on Thursday that he had “no intention” to ban cryptocurrencies. However, he added that stablecoins may be suitable for regulation.
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