[ad_1]
Bitcoin and other cryptocurrencies surged suddenly on Friday, a day after Federal Reserve Chairman Jerome Powell said the United States had no plans to ban crypto currencies.
Bitcoin rose 10.8% from its 5 p.m. ET Thursday value to $ 48,109.69, its highest level in nearly a month. Ether, the second largest cryptocurrency in terms of market value, also gained 10.8% to $ 3,293.01 over the same period.
There was no obvious catalyst for the upward movement in notoriously volatile digital currencies, which occurred early Friday morning. Some traders pointed to Mr Powell’s comments at the House Financial Services Committee on Thursday and the start of the fourth quarter on Friday, when investors occasionally reset their portfolios.
Bitcoin slipped last week after China’s central bank declared cryptocurrency-related transactions illegal.
Photo:
Kin Cheung / Associated press
Regulatory concerns have limited cryptocurrency prices in recent months. Bitcoin slipped last week after China’s central bank declared cryptocurrency-related transactions illegal, strengthening the country’s tough stance against digital rivals in government-issued money.
During an interrogation before the House Financial Services Committee, Mr Powell was asked if he intended to ban or limit the use of cryptocurrencies, as in China.
He said there was “no intention to ban them,” but added that stablecoins, which are cryptocurrencies whose value is tied to government-issued currencies such as the dollar, ” are like money market funds, they are like bank deposits, but they are to some extent outside the regulatory scope and it is appropriate that they be regulated.
While the comments did not indicate any obvious policy changes, cryptotraders hailed the Fed chairman’s stance.
“It was of course a very favorable rating, especially when compared to the People’s Bank of China,” said Naeem Aslam, chief market analyst at brokerage AvaTrade.
The cryptocurrency surge has boosted shares of the digital exchange Coinbase Global Inc.,
which was up more than 3% in pre-market trade.
Chinese bitcoin miners have long dominated the global processing power that runs the bitcoin network with sophisticated equipment and access to cheap electricity. But now a group of American miners with deep pockets want to take over more of the industry. Photo: Adam Chapman for The Wall Street Journal
Write to Caitlin Ostroff at [email protected]
Copyright © 2021 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the October 2, 2021 print edition under the headline “Powell Comment Gives Bitcoin A Boost.”
[ad_2]
Source link