Bitcoin price surges after Powell says US has no plans to ban crypto

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Bitcoin and other cryptocurrencies surged suddenly on Friday, a day after Federal Reserve Chairman Jerome Powell said the United States had no plans to ban crypto currencies.

Bitcoin rose 10.8% from its 5 p.m. ET Thursday value to $ 48,109.69, its highest level in nearly a month. Ether, the second largest cryptocurrency in terms of market value, also gained 10.8% to $ 3,293.01 over the same period.

There was no obvious catalyst for the upward movement in notoriously volatile digital currencies, which occurred early Friday morning. Some traders pointed to Mr Powell’s comments at the House Financial Services Committee on Thursday and early in the fourth quarter on Friday, when investors occasionally reset their portfolios.

Bitcoin slipped last week after China’s central bank declared cryptocurrency-related transactions illegal. Photo: Kin Cheung / Associated Press

Regulatory concerns have limited cryptocurrency prices in recent months. Bitcoin slipped last week after China’s central bank declared cryptocurrency-related transactions illegal, strengthening the country’s tough stance against digital rivals in government-issued money.

During an interrogation before the House Financial Services Committee, Mr Powell was asked if he intended to ban or limit the use of cryptocurrencies, as in China.

He said there was no intention to ban them, but added that stablecoins, which are cryptocurrencies whose value is tied to government-issued currencies such as the dollar, are like funds. money market, they are like bank deposits, but they are to some extent outside. regulatory scope and should be regulated.

While the comments indicate no obvious policy changes, cryptotraders have welcomed the Fed chairman’s stance.

That was of course a very positive rating, especially when you compare it to the People’s Bank of China, said Naeem Aslam, chief market analyst at brokerage firm AvaTrade.

The cryptocurrency surge has boosted shares of digital exchange Coinbase Global Inc., which is up more than 3% in pre-market exchanges.

Chinese bitcoin miners have long dominated the global processing power that runs the bitcoin network with sophisticated equipment and access to cheap electricity. But now, a group of American miners with generous pockets want to take over a bigger slice of the industry. Photo: Adam Chapman for The Wall Street Journal

Write to Caitlin Ostroff at [email protected]

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Appeared in the October 2, 2021 print edition under the headline “Powell Comment Gives Bitcoin A Boost.”

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