[Asia Economy New York=Correspondent Baek Jong-min] The price of Bitcoin surged by 10% in a strong rally.
Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), mentioned that there is no intention to regulate cryptocurrencies, and the government of El Salvador started Bitcoin mining using volcanic geothermal energy, which is evaluated to have driven up the market price.
As of 5 p.m. local time on the 1st, Bitcoin recorded a 10.8% increase to $48,109.69. This is the highest level in over a month.
Ethereum, the second largest cryptocurrency by market capitalization, also rose 10.8% to $3,293.01.
The Wall Street Journal analyzed that the rally starting from the morning was influenced by it being the first trading day of the fourth quarter and Chairman Powell’s congressional remarks.
The Journal noted the contrasting stances between the People’s Bank of China, which emphasized cryptocurrency regulation, and the Fed. Naim Aslam, an analyst at AvaTrade, explained, "Compared to the People’s Bank of China, the Fed was very positive."
El Salvador, which designated Bitcoin as legal tender, has begun geothermal mining.
President Nayib Bukele of El Salvador tweeted on the day, "Although it is still in the testing and installation phase, this is officially the first volcanic Bitcoin mining," and shared the status of Bitcoin mining.
The attached chart shows that a total of 0.01083155 Bitcoin was mined. Its current value is approximately $514 (about 610,000 KRW).
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