Bitcoin surges above US$7,000

LONDON • Bitcoin jumped above the US$7,000 level as its longest winning streak since 2013 continued to rekindle the global cryptocurrency market.

The rise comes only a few days after bitcoin broke through US$6,000, and looks set to boost investor interest at conferences on the technology underlying the biggest crypto asset taking place in New York this week.

The latest surge happened on Saturday, when the two United States exchanges carrying futures were closed, making it difficult for short sellers to cover their wagers.

"Bitcoin is acting differently since moving above its 200-day moving average" and the gains are occurring on strong volumes, Fundstrat co-founder Tom Lee wrote in an e-mail. Blockchain Week is underway and the Consensus forum is set to start, where people are "expecting a higher-quality conference", he said.

Traders have recently pointed to institutions increasingly embracing digital coins. The likes of Fidelity Investments plan to buy and sell bitcoin for institutional customers soon, and E*Trade is dipping into the trading space. Earlier this month, the Bank of Canada and Monetary Authority of Singapore announced they had sent each other digital currencies using blockchain technology.

Bitcoin rose as much as 14 per cent yesterday to as high as US$7,174.63, then pared the gain to 13 per cent, according to composite prices compiled by Bloomberg. Rival coins surged in a broad rally, with litecoin and ether both at least 11 per cent higher.

BLOOMBERG

A version of this article appeared in the print edition of The Straits Times on May 14, 2019, with the headline 'Bitcoin surges above US$7,000'. Print Edition | Subscribe