The price of bitcoin has risen to its highest level in nearly two weeks
The price of bitcoin has risen to its highest level in nearly two weeks
Bitcoin rose to its highest level since around the middle of September on Friday, aided in part by seasonal factors and, more broadly, by comments from US Federal Reserve Chairman Jerome Powell on Thursday that were supportive of the cryptocurrency.
In response to a question from House Representative Ted Budd, Powell stated during his testimony before Congress that the Federal Reserve had no intention of banning cryptocurrencies.
Additionally, according to some analysts, October is typically a bullish month for digital assets, with September being traditionally considered a bearish month for the sector.
According to Ulrik K.Lykke, founder of crypto assets hedge fund ARK36, "the digital asset market is benefiting from both the seasonality effect as well as generally positive market fundamentals."
"Q4 has historically seen strong results, and the expectation that this trend will continue this year may become a self-fulfilling prophecy. It is possible that we will see new all-time highs in the fourth quarter, especially given the fact that on-chain data, particularly in the case of bitcoin, appears to indicate the possibility of a strong bull market extension."
Powell's remarks on Thursday, according to him, were also a contributing factor to bitcoin's upward price movement.
The prices of major cryptocurrencies, such as Bitcoin and Ether Witness, have fallen
The largest cryptocurrency was up 9.3 percent at $47,910 at the time of writing, after reaching a high of $48,236.08. If the current trend continues, bitcoin will be on track to post its largest daily percentage gain since the beginning of June.
Ethereum and XRP, which are smaller coins that often move in tandem with bitcoin, were up 10.1 percent and 8.5 percent, respectively, to $3,301 and $1.0326, respectively.
In addition, Joseph Edwards, head of research at Enigma Securities in London, stated that increasing volumes on cryptocurrency derivatives exchanges could be a contributing factor to the moves. The trading of derivatives has a significant impact on spot prices in bitcoin markets.
According to data released on Friday by the Commodity Futures Trading Commission, bitcoin's net short position in the futures markets fell to -883, the lowest level since mid-August.
