Bitcoin posts biggest daily gain since July, tops $47,000

Bitcoin jumped on Friday, rising in a matter of minutes to its biggest daily gain since July, and other digital currencies surged in a shock rally that followed the largest monthly decline since May.

BNN Bloomberg reported that the largest cryptocurrency by market value rose as much as 10 per cent to $47,884 early in New York trading before paring gains.

Ethereum, Litecoin and EOS also jumped, with the Bloomberg Galaxy Crypto Index rising as much as 8.9 percent. Bitcoin had slumped 7.6 percent in September amid concern about increasing regulatory pressure in China and the US. 

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 Federal Reserve Chair Jerome Powell’s comments Thursday that the central bank had “no intention” to ban cryptocurrencies, while other cited price levels such as moving averages that are closely watched by technical analysts.

“Markets have been trading sideways for weeks, over a lack of regulatory clarity and statements from U.S. authorities indicating they were seeking to significantly curtail crypto activity,” said Leah Wald, chief executive of crypto asset manager Valkyrie Investments.

“That, combined with weakness in the stock market, and the month of October being a typically bullish time for crypto markets, could signal a shift to risk-on trading in crypto markets for the next several weeks, as investors seek returns in non-traditional assets.” 

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