Looks like Bitcoin is finally getting back on its feet after falling for most of the year.
The world's largest cryptocurrency climbed 12 percent as of 8 a.m. India time, piercing both the $7,000 and the $8,000 levels in the previous session, according to Investing.com.
Bitcoin had swung wildly between gains and losses in December while reaching a record high of almost $20,000 before crashing.
Other digital currencies also saw a spike:
- Ethereum +10.8 percent;
- Ripple +12.4 percent;
- Bitcoin Cash +8.3 percent
The recent surge in the crypto comes as tax-related selling by investors came to an end.
Another potential boost could have been news that Santander, the large Spanish lender, plans on using blockchain technology for a new foreign exchange payments system.
Even technicals suggest the bounce-back was in the offing. Bitcoin's daily relative strength index is showing momentum, reversing its March downward trend from oversold levels.
Perhaps the skeptics were too hasty in calling an end to the crypto-craze, and a reversal is imminent?
According to Pantera Capital Management, which has more than $800 million in assets, $6,500 was the low of this bear market and Bitcoin will stay above that price for the majority of the next year.
The digital currency has had a tough run this year as series of crackdowns by global regulators hit exchanges and the decision of the Mt. Gox, the exchange that collapsed in 2014, to sell hundreds of millions of dollars worth of digital currency.
"I believe the surge in Bitcoin price is connected more with decreased selling pressure than anything else," David Johnson, CEO of Latium told Forbes.
