Bitcoin Price Highest In Nearly Two Weeks

Bitcoin rose to its highest level since mid-September on Friday, reinforced in part by seasonal factors and overall supportive comments from Federal Reserve Chair Jerome Powell on Thursday.

In a statement to Congress, Powell said the Fed has no plans to ban cryptocurrencies in response to questions from House spokesman Ted Bud.

Some analysts also say October is typically a bullish month for digital assets, with September historically being a bearish time for the sector.

“Digital asset markets benefit from seasonal effects and generally positive market fundamentals,” said Ulrik K. Likke, founder of crypto asset hedge fund ARK36.

“The fourth quarter is often a strong result, and the expectation that the trend will continue this year can be a self-fulfilling prophecy. It is possible that we will see new all-time highs in the fourth quarter, in particular that the chain data, especially in the case of bitcoin, seems to indicate the potential for the bull market to continue strongly. ”

He also cited Powell’s comments on Thursday as one of the factors behind Bitcoin’s positive price effect.

The last largest cryptocurrency rose 9.3% to $47,910 after hitting a maximum of $48,236.08. If gains hold, Bitcoin will be on track to hit its highest daily profit margin since mid-June.

The smaller Ether and XRP coins, which tend to move in parallel with Bitcoin, were up 10.1% to $3,301 and 8.5% to $1.0326, respectively.

Joseph Edwards, head of research at Enigma Securities in London, also said that the increase in cryptocurrency exchange volumes was a possible driver for this move. Trading derivatives often affect the spot price in the Bitcoin market.

Bitcoin net short in futures markets was -883, the lowest since mid-August, according to data released by the Commodity Futures Trading Commission on Friday.

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