The Bitcoin price (BTC/USD) has rallied over the $8,500 level for the first time this month.
Following a quiet morning session, during which the Bitcoin price remained near its opening level of $8,229.84, the original cryptocurrency experienced a sudden surge in early afternoon trading. As a result, the digital coin reached a two-week high of $8,627.71. BTC spent the rest of the session hovering around the $8,600 mark and eventually finished the day at $8,595.74.
While the Bitcoin price has edged lower since the start of today’s trading, it has remained above the $8,500 mark. At the time of writing, the Bitcoin price was hovering around the $8,550 mark, according to data from digital currency tracker Coinmarketcap.
The Bitcoin price increase, which was part of a larger upswing observed across the crypto market, followed comments by the US Federal Reserve chairman Jerome Powell, who on Tuesday indicated that the central bank would soon start expanding its balance sheet to maintain appropriate level of reserves. While the Fed chief said that this should not be viewed as quantitative easing, some viewed the comments as possibly hinting that the Fed might loosen its monetary policy, which has been beneficial to BTC prices in the past.
“We know that that has historically helped bitcoin,” Joe DiPasquale, chief executive officer of the cryptocurrency-focused investment firm BitBull Capital, said in an interview with Coindesk.
The price jump was supported by a notable increase in trading volume. Bitcoin posted daily trading volume of $19.38 billion on Wednesday, which was well above the $15.59 billion the coin had generated in the preceding session. Meanwhile, recent market data shows that about $20.5 billion worth of BTC coins have changed hands over the past 24 hours.
In today’s trading, the Bitcoin price stood at $8,546.52, as of 10:53 BST. The digital currency has gained 3.8% in the past 24 hours. Its total market capitalisation currently stands at $153.7 billion.
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