Bitcoin and cryptocurrency prices are suddenly soaring, with bitcoin coming within touching distance of $50,000 for the first time since early September.
The bitcoin price has added 10% over the last 24 hours, gaining $5,000 within one hour this morning. Other major cryptocurrencies have also leaped higher, with ethereum jumping 9% and climbing back over $3,000 per ether.
The sudden rally—that’s seen other top ten cryptocurrencies by value including cardano, Binance’s BNB, Ripple’s XRP, solana, polkadot and dogecoin all add around 10%—has once more pushed the combined cryptocurrency market over $2 trillion.
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The exact cause of the bitcoin and crypto price surge higher wasn’t immediately clear, however, some pointed to comments made yesterday by the chair of the Federal Reserve Jerome Powell that the U.S. wouldn’t follow in China’s footsteps in banning bitcoin and cryptocurrencies.
“Digital assets will continue to integrate into the financial system, and also become an increasingly popular sector for the allocation of assets among large investors and institutions,” Gregory Klumov, the chief executive of stablecoin platform Stasis, said in emailed comments.
Others crypto market watchers joked the sudden rally is merely a result of the bearish month of September coming to an end. September is historically a poor-performing month for the bitcoin price, with bitcoin dropping almost 10% through September this year, falling along with most financial markets.
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“At this point, buyers are starting to buy back bitcoin quickly, which gives some hope,” Alex Kuptsikevich, the FxPro senior financial analyst, said via email.
“Over the past month, bitcoin has beat off attempts by bears in this area five times. Bitcoin has finally offset the Chinese news factor and further news from China is likely to have less and less influence on bitcoin price dynamics.”
Earlier this month, it was predicted that U.S. Securities and Exchange Commission (SEC) could greenlight a long-awaited bitcoin exchange-traded fund (ETF) as soon as October—something that’s thought could send the bitcoin price as high as $100,000.