Bitcoin rises above $8,000 for the first time since March following a dramatic price spike. The price of bitcoin has shot up by more than $1,000 in a bizarre price spike for the cryptocurrency.

The volatile virtual currency rose from below $7,000 to briefly reach above $8,000 in an unprecedented surge that follows several months of steady decline. It is not yet clear what has caused the value to increase by such a large amount, with some analysts speculating that breaking the $7,000 price point sparked a surge in bitcoin investment.  The price gains represent a 12 per cent increase since this time yesterday and a 14 per cent increase week-on-week.

In the last year, bitcoin has risen by over 500 per cent in value. At the time of writing, bitcoin was trading at around $7,700 on the Coinbase exchange.

In recent weeks, bitcoin has slowly fallen in value amid fears that the highs seen in late 2017 were the result of a bubble.  At its peak last December, one bitcoin was worth close to $20,000. Other leading cryptocurrencies have mirrored bitcoin’s return to form, with ethereum, ripple, bitcoin cash and EOS all experiencing gains of more than 10 per cent over the last 24 hours. Cryptocurrency analysts recently suggested that bitcoin’s recent demise was only temporary, predicting a turn in fortunes for the world’s most valuable cryptocurrency.

Speaking to The Independent earlier this month, one expert said the price of bitcoin could return to its 2017 highs and even push beyond. “The price has been driven by speculators and they suddenly got cold feet but there’s considerable effort going on behind the scenes, including new underlying technology that is powering faster transactions,” said Michael Jackson, the former COO of Skype who now works in the cryptocurrency space. Read more from…

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