1 min read.Updated: 01 Oct 2021, 06:15 PM IST Edited By Vivek Punj
Bitcoin gained as much as 9.9 per cent to $47,742 early in New York trading after falling 7.6 per cent in September. Ethereum, Litecoin and EOS also jumped
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Bitcoin clocked its biggest daily gain since July in a matter of minutes on Friday. Other digital currencies also surged in a shock rally that came after the largest monthly decline since May.
The largest cryptocurrency gained as much as 9.9 per cent to $47,742 early in New York trading after recording a decline of 7.6 per cent in September amid concern about increasing regulatory pressure in China and the US. Ethereum, Litecoin and EOS also jumped, with the Bloomberg Galaxy Crypto Index rising as much as 8.3 per cent.
Despite falling in September, Bitcoin recorded a 25 per cent gain in the third quarter of this year. That compared with a drop of 41 per cent in the prior three months.
Traders offered a variety of possible reasons for the gains, while noting that the fractionalised market leaves digital assets vulnerable to volatile price swings. Some pointed to comments early Thursday by Federal Reserve Chair Jerome Powell, while other cited price levels closely watched by technical analysts.
“We could be seeing the beginning of some de-correlation with traditional markets here," Vijay Ayyar, head of Asia-Pacific with cryptocurrency exchange Luno Pte, told Bloomberg.
“Early to say though. But that whole narrative that didn’t play out all of last year might just be taking shape. Especially since a lot of the uncertainty with regard to the US debt ceiling, China clampdown, etc. Crypto seems to be in its own bull cycle and continuing higher," he added.
Powell said in a Congressional hearing Thursday that he had “no intention" on banning cryptocurrencies. He did, however, add that stablecoins might be appropriate for regulation.