US green light for cryptocurrencies. Bitcoin jumps to this level

Within minutes, Bitcoin hit its biggest daily gain since July, and other cryptocurrencies rallied in a sudden rally that followed the biggest monthly drop since May.

Ethereum, Litecoin and EOS also surged, and the Bloomberg Galaxy Crypto Index rose 8.9%. It comes after Bitcoin fell 7.6% in September amid fears of increased regulatory pressure in China and the United States.

Traders offered various potential reasons for the gains, with some citing comments by Federal Reserve Chairman Jerome Powell on Thursday that the central bank did not “intend to ban cryptocurrencies,” while that some have cited price points such as moving averages that technical analysts are watching closely. .

Powell said during a congressional hearing on Thursday that he had “no intention” to ban cryptocurrencies. However, he added that stablecoins could be more regulated.

“Markets have been trading with a ban for weeks now, due to a lack of regulatory clarity and data from US officials indicating they are looking to significantly reduce crypto activity,” said Leah Wald, CEO of crypto asset manager Valkyrie Investments.

She added: “This, combined with the weakness in the stock market, October being a typical bullish period for cryptocurrency markets, could signal a shift in risk-based trading in crypto markets over the years. coming weeks, as investors seek returns in the crypto markets. »Other than traditional assets.

With the Bitcoin rally, cryptocurrency exchange stocks took a boost, with Marathon Digital Holdings Inc., Bit Digital and MicroStrategy up more than 5% on Friday, after Bitcoin surged more than 11%, exceeding the level of $ 48,000.

Bitcoin

Meanwhile, Riot Blockchain Inc and Coinbase Global posted gains of 1.6%.

Bitcoin also turned its losses in September as the largest monthly loss since last May, gaining 26% in the third quarter, down from a 41% drop in the second quarter.

Anthony Trenchev, managing partner and co-founder of Nexo Cryptocurrency Lending, said he was encouraged that such a rapid move has put Bitcoin above its 20, 50 and 200 day moving averages. in one pass.