Cryptocurrency Bitcoin surged six per cent this morning to hit a six-month high, in a move that has left traders “dazzled”.
Bitcoin climbed as high as $5,796 today, its highest level since 14 November, according to data from Bitstamp. It has since dipped to roughly $5,730.
The bullish movement comes after a four-day period of gains, and the peak this morning exceeded market expectations.
“[Traders] are completely dazzled,” said Naeem Aslam, chief market analyst at Think Markets. “The Bitcoin price has crossed the level of $5,700 and this is all due to the strong price momentum which have been building up for the last few weeks.”
Aslam said the price jump may also have been driven by reports that Facebook is considering developing its own cryptocurrency system, similar to Bitcoin, for use on its platform.
But Marcus Swanepoel, chief executive at cryptocurrency firm Luno, warned the gains could be reversed by profit-taking at the end of the week.