The price of Bitcoin (BTC) surged to nearly $48,000 during October 1, as the classic “short squeeze” liquidated more than $270 million of cryptocurrency trades in less than an hour.
Data from Cointelegraph Markets Pro and Trading View showed the BTC/USD pair reaching $47,800 on Bitstamp, jumping $3,000 in minutes.
Bitcoin appears to have started the fourth quarter of the year on the upside, increasing on Friday by nearly 10% amid growing confidence among speculators that the crypto-asset will continue to post gains despite mounting regulatory pressure.
The rise of Bitcoin helped push other cryptocurrencies such as Ether and Litecoin higher. Thursday’s comments were interpreted by Federal Reserve Chairman Jerome Powell, as a sign that the US might take a lighter regulatory stance.
During the Treasury and Federal Reserve’s Epidemic Response Monitoring Session, Powell confirmed that the United States has no plans to ban Bitcoin and cryptocurrencies.
“We may see the beginning of decoupling here,” said Vijay Ayar, head of Asia Pacific at cryptocurrency exchange Luno Pte. “It seems that the cryptocurrency is in its own upside cycle and continues to rise,” Bloomberg reported.
Despite dropping 7.6% in September, Bitcoin posted a 25% gain in the third quarter. This compares to a 41% decrease in the previous three months.