Good news for Bitcoin investors and traders after the Federal Reserve ruled out a ban on cryptocurrencies. Not long before that, Chinese authorities recently announced a ban on all transactions related to cryptocurrencies and crypto mining.
The bitcoin price jumped 10% in a very short time to $47,884.
The price jump came after FED Chairman Powell announced in a hearing that the Fed has no intention to ban cryptocurrencies but will try to introduce regulations. Besides Bitcoin, other cryptocurrencies also made jumps upwards. It remains unclear which regulations the Fed wants to introduce in relation to cryptocurrencies. The attempt to introduce regulations, however, clearly goes in the direction that the government does not want to lose its power in relation to currencies.
At the moment, however, it was still unclear what had triggered the sudden jump in price that saw Bitcoin jump $3,000 in a very short period of time. Traders and speculators may have seen this as a government endorsement of cryptocurrencies.
From a technical point of view, the $40,000 mark could be a key mark. If the bitcoin price can hold this mark for the next while, it could soon break out to the upside again.