Bitcoin jumps to start October and analysts see strong fourth-quarter ahead for crypto
Cryptocurrencies got off to a rough start for the third quarter but ended with solid gains, overcoming a raft of negative headlines on the space.
And prices were hopping on the first day of October as investors bet on a fourth-quarter run. Bitcoin popped about 8% to above $47,000 on Friday, according to Coin Metrics. Ethereum jumped 9%.
In cryptocurrencies, bitcoin rallied to a nearly two-week high of just under $48,000. It was last up 9.4% at $47,902. Analysts cited seasonal factors, with the fourth quarter typically viewed as a bullish period for digital assets.
Smaller coins ether and XRP, which tend to move in tandem with bitcoin, were up nearly 10% at $3,294 and 8.2% at $1.0299, respectively.
Bitcoin rose on Friday to its highest level since around mid-September, bolstered in part by seasonal factors as well as supportive comments overall from U.S. Federal Reserve Chairman Jerome Powell on Thursday.
In testimony to Congress, Powell said the Fed had no intention of banning cryptocurrencies, in response to a question from House Representative Ted Budd.
Some analysts also said October is typically a bullish month for digital assets, with September historically a bearish period for the sector.
"The digital asset market is benefiting both from the seasonality effect as well as generally positive market fundamentals," said Ulrik K.Lykke, founder of crypto assets hedge fund ARK36.
Powell's comments on Thursday as one factor for bitcoin's positive price action.
Reference: CNBC, Reuters
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