Bitcoin Climbs Above $47K, Ignoring Stock Market Weakness; Fed’s Preferred Measure of Inflation Eyed


Bitcoin is pushing higher despite classic risk-off action in traditional markets. The cryptocurrency’s resilience has raised investors’ hopes for a stellar rally in October.

At 10:41 UTC, the cryptocurrency was trading 7% higher on the day near $47,200. The broader crypto market is also positive, with native cryptocurrencies of smart-contract blockchains like VeChain, Tezos, and Elrond gaining more than 8%. Ethereum’s ether traded 7% higher at $3,245.

S&P 500 e-mini futures, meantime, are nursing a 0.5% loss, indicating a lower opening for the benchmark stock index. The dollar index, which tracks the value of the greenback against major fiat currencies, is trading just short of the 12-month high of 94.50 reached Thursday.

Reduced probability of regulatory clampdown on crypto markets seems to be cushioning bitcoin from the instability of traditional markets. On Thursday, Federal Reserve Chair Jerome Powell told Congress that the central bank had “no intention” to ban cryptocurrencies, including stablecoins. Powell’s comments came a day after the U.S. Securities and Exchange Commission Chair Gary Gensler reiterated support for bitcoin futures-based exchange-traded funds (ETF).

The sentiment in the crypto community appears quite bullish, with several analysts and traders referring to October as “Uptober” on Twitter – a newly coined slang, representing expectations for a price rally this month.