Bitcoin jumped sharply, its biggest one-day gain since July in just a few minutes. Other digital currencies also rose. Bitcoin recorded its biggest monthly decline since May in September.
The largest cryptocurrency rose 9.9 per cent to $47742 in early trading in New York. The Lite and EOS also rose, with the Bloomberg Galaxy cryptocurrency index up 8.3 per cent at one point. Bitcoin fell 7.6% in September on concerns about increased regulatory pressure.
Traders provide a variety of possible reasons for today's rally, while pointing out that market segmentation makes digital assets vulnerable to price fluctuations. Some referred to comments made by Federal Reserve Chairman Colin Powell earlier Thursday, while others referred to price levels closely watched by technical analysts.
"We may see decoupling from traditional markets from here," said Vijay Ayyar, Asia-Pacific head of Luno Pte, the cryptocurrency exchange. "but it may be too early to say. But an overall narrative that has not been completed for the whole of last year may be taking shape. Especially given the many uncertainties such as the US debt ceiling. The cryptocurrency seems to be in its own bull market cycle and continues to rise. "
Powell told a congressional hearing on Thursday that he had "no intention" to ban cryptocurrencies. However, he added that a stable currency might be suitable for regulation.
Despite falling in September, Bitcoin rose 25% in the third quarter. By contrast, it fell 41% in the second quarter.