Bitcoin price rallies to hit a one-month high but volatility ahead

Despite a crackdown on bitcoin in China, other markets like Japan have had a positive impact on the price of the digital currency.

Bitcoin staged a rally over the weekend to hit a one-month high despite experts warning of a potentially volatile upcoming event for the cryptocurrency.

The digital currency hit a high of $4,867 Monday, its highest since Sept. 2 and before the China crackdown, according to data from industry website CoinDesk. Bitcoin last traded nearly 5 percent higher on the day at $4,821.

With Monday’s gains, the digital currency had a market capitalization of $80 billion. Meanwhile, the prices of most other major digital currencies declined. Ethereum fell 4 percent, to $296, according to CoinDesk. The bitcoin offshoot, bitcoin cash, was one of the greatest decliners, falling nearly 13 percent, to $304, according to CoinMarketCap.

“There has been a rotation of money out of the lower-quality names and into bitcoin,” Ronnie Moas, founder of Standpoint Research, told CNBC. He also said people are speculating that “bitcoin will rally following the upcoming fork as it did following the August 1 fork” into bitcoin and bitcoin cash.

A similar split is scheduled for mid-November.

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