With an impressive jump, within minutes, Bitcoin made a spectacular premiere in October, soared towards the $50,000 zone, setting new “fires” in the cryptocurrency market.
The most popular cryptocurrency climbed 8.37% yesterday, gained $3,000 at lightning speed, and reached $47,422.77.
Bitcoin dragged with it Ethereum, the cryptocurrency which soared 7.36%, to $3,233.70.
Behind their impressive rise, market insiders point to Fed Chairman Jerome Powell, who on Thursday night – during his testimony to the Congressional Finance Committee – was asked if the Federal Reserve is planning restrictive interventions in the use of cryptocurrencies, similar to those of China.
Powell’s response was a categorical “no,” which gave rise not only to massive bitcoin purchases but also to expectations of the availability of cryptocurrency-linked mutual funds.
According to the investment brand Fundstrat, if there is approval by the US Securities and Exchange Commission for this type of mutual, then bitcoin can go up by as much as 50%.
Stablecoins Restrictions
Jerome Powell, however, clarified that restrictions are being designed for stablecoin-type cryptocurrencies, which act as deposit accounts.
He said the Fed and the U.S. Treasury will table these new regulations in a bill within the next two weeks, but the interventions will not touch bitcoin and ethereum.
The meeting was also attended by US Treasury Secretary Janet Yellen, who has made her own comments – not always supportive – about buying cryptocurrencies in the past. Yellen is one of those investigating the potential impact of crypto and stable currencies.
With the increasing number of developments and updates coming from the government on cryptocurrencies, it seems that the US is preparing for a much more substantial change in the cryptocurrency market.
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