Bitcoin began the fourth quarter on a high note, rallying almost 10% amid speculation the digital asset will continue to gain despite rising regulatory pressure.
The largest digital asset by market value jumped as high as $47 742, helping to push other coins such as Ether and Litecoin higher. Comments midday Thursday by Federal Reserve Chair Jerome Powell were interpreted as a sign that the US could take a lighter regulatory stance.
“We could be seeing the beginning of some de-correlation with traditional markets here,” said Vijay Ayyar, head of Asia-Pacific with cryptocurrency exchange Luno Pte. “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 U.S. debt ceiling, China clampdown, etc. Crypto seems to be in its own bull cycle and continuing higher.”
Despite falling 7.6% in September, Bitcoin posted a 25% gain in the third quarter. That compared with a drop of 41% in the prior three months.