Key Takeaways
- Bitcoin (BTC) puts up an impressive Bull-run to cross the $49,000 mark
- After China intensifies crackdown, US Federal Reserve Chairman says he won’t ban crypocurrencies
- Bitcoin’s rally takes altcoins for a ride, registering ATH for some of them
YEREVAN (CoinChapter.com) — Bitcoin (BTC) got the markets excited as the bulls rallied behind on Sunday. After falling to a little above $40,000 on 29 Sept., BTC put up an impressive performance, shooting the prices by over 20%.
Amid the excitement, the world’s number one cryptocurrency crossed the $49,000 mark before the bears woke up to stop its advance.
The psychological resistance at $50,000, however, remained unbroken.
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Bitcoin (BTC) takes a deep breath after a stressful week
The bullish run to the $49,000 mark came days after a new circular by the People’s Bank of China (PBoC) created panic.
Through a notice issued on 15 Sept., the Chinese bank accelerated its crackdown on cryptocurrencies. Although the apex bank released the circular days earlier, it appeared on the internet late. Unsurprisingly, the FUD (fear, uncertainty, doubt) factor took over the market.
The PBoC once again reaffirmed that cryptos are not a legal tender in China and crypto mining is “illegal.” Moreover, it banned financial organizations, cryptocurrency exchanges, online platforms, etc from facilitating cryptocurrency trading.
As a result, Bitcoin shed a couple of thousand dollars. Along with BTC, Ethereum (ETH) nosedived as well.
However, on Oct. 1, Bitcoin’s rally enabled it to break its temporary resistance of around $47,000 set by its downtrend line since it crossed $53,000 on Sept 6.
Sunday’s run brought back expectations of crossing the $50K mark again.
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Federal Reserve will not ban Bitcoin, the Chairman confirms
As Bitcoin (BTC) ushered in Quarter 4 with a massive green candle, it received good news from the US authorities. Federal Reserve chairman Jerome Powell confirmed that the Fed has no intention of banning Bitcoin (BTC) and other cryptocurrencies.
Asked at a Congressional hearing on Thursday if he would ban or limit cryptos, Powell clarified he does not intend to go down the Chinese path.
The answer came when Powel responded to a question from North Carolina Representative Ted Budd. Congressman Budd was referring to a statement of Powel wherein the Fed Chairman had suggested one wouldn’t need cryptocurrencies if there was a digital dollar.
“As a matter of policy, is it your intention to ban or limit the use of cryptocurrencies like we’re seeing in China?”
Budd asked Powell.
Powell clarified, that he was not talking about cryptocurrencies but about stable coins, which are the same in value as the USD.
“Stablecoins are like money market funds, they are like bank deposits, but they’re to some extent outside the regulatory perimeter and it’s appropriate that they be regulated. Same activity, same regulation,”
Powell said.
There is “No intention to ban” cryptocurrencies, he further confirmed.
Chairman Powell’s stance on cryptocurrencies is in stark contrast to that of Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC).
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Altcoins go for a ride
Bitcoin’s bullish run impacted the prices of altcoins as well, taking them along on the joyride. As a result, several coins flirted with double digits.
Terra (LUNA) benefitted from the BTC bull run and climbed 53.34% from its low of $32K on Sept. 2 to reach a new all-time high at $49.70 by Monday evening Eastern Time.
Axie Infinity (AXS) also rushed to the occasion. It registered a new all-time high at $155.88 before dropping 10.8% by the end of the trading day.
Other altcoins also spiked, with Dogecoin (DOGE) and Floki Inu (FLOKI) getting an additional push from Elon Musk.
In the meanwhile, El Salvador’s president returned to the scene. The flamboyant Bitcoin supporter showed off his success by announcing, that over 3 million people now use his country’s Chivo Wallet.
With the markets already facing a correction, time will show if the bullish expectations of crossing $50K will materialize. Alternatively, we could see a massive dump, sending prices further south.
