The price of the digital currency Bitcoin rose on Friday to its highest level since mid-September, supported by several factors, including seasonal influences and statements from U.S. Federal Reserve Chairman Jerome Powell on Thursday. Powell stated in a speech to the U.S. Congress, in response to a question from Congressman Ted Budd, that the Federal Reserve has no intention of banning digital currencies. Analysts note that October is typically a positive month for digital assets, whereas September has historically been viewed as a negative period for the sector.
Bitcoin, the leading cryptocurrency, surged 9.3% to $47,910 in the latest trades. If it maintains this level, it will be on track for its largest daily percentage gains since mid-June. The weaker currencies, Ethereum and XRP, which tend to be affected by Bitcoin's movements, also rose by 10.1% to $3,301 and 8.5% to $1.0326, respectively.
Ulric Leclercq, founder of the ARK36 fund, noted, "The digital asset market benefits from seasonal influence" and pointed out that Powell's comments represent "one factor behind the positive price movement of Bitcoin." Joseph Edwards, head of research at Enigma Securities in London, explained that the increase in trading volumes overall is a potential driver of these movements for Bitcoin. Trading often impacts spot prices in Bitcoin markets, according to Reuters.
