Bitcoin surged in the early minutes of the market on the 1st, recording its highest daily return since July, and other digital currencies also succeeded in rebounding following their biggest monthly decline since May.
In the early days of Bitcoin New York trading, it soared 10% to $47,884. Ethereum, Litecoin, and EOS (EOS) also surged as the ‘Bloomberg Galaxy Crypto Index’ rose by up to 8.9%. Bitcoin fell 7.6% in September on concerns about growing regulatory pressures from China and the United States.
Traders have offered a variety of possible reasons for the gains, noting that fragmented markets make digital assets vulnerable to volatile price movements. While some pointed to comments by Federal Reserve Chairman Jerome Powell that central banks had no intention of banning cryptocurrencies, others cited technical indicators such as moving averages, which are closely tracked by tech analysts.
“This is where we can see the traditional markets starting to de-correlate,” said Vijay Ayyar, Asia Pacific head of cryptocurrency exchange Luno Pte. He continued, “It’s too early to say. But a whole narrative that didn’t go on over the past year may be just beginning to form. In particular, amid a lot of uncertainty about the US debt limit and China’s crackdown, cryptocurrencies seem to continue to rise in accordance with their own bullish cycle.”
Marathon Digital Holdings Riot Blockchain. And cryptocurrency-related stocks, including Bit Digital, are also showing an upward trend at the same time as Yinan Bitcoin soared. Meanwhile, Fed Chairman Powell said at a congressional hearing the day before that he had no intention of banning cryptocurrencies. However, he added that stablecoins may be regulated.
Bitcoin rose 25% in the third quarter despite a September decline. This compares to a 41% decline over the past three months. Technicians are turning to charts for clues as to where Bitcoin might go next. Antoni Trenchev, co-founder and managing partner of cryptocurrency lending firm Nexo, said the swift move caused Bitcoin to quickly surpass the 20-day, 50-day and 200-day moving averages in one quick pass. .
Also, as the MACD gauge (moving average convergence divergence) turned positive, it is looking for upward momentum. However, Trenchev expressed concern that “a cautious and abrupt price movement could quickly de-escalate.”
Kyungsoo Kim, Editor-in-Chief, Global Economics ggs077@g-enews.com
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