Bitcoin surged Thursday, recovering from a sharp sell-off to briefly top $12,000. The volatile digital currency hit a high of $12,045.09, up 30.9 percent from a low of $9,199.59 a day ago on CoinDesk.

CoinDesk’s bitcoin price index tracks prices from Bitstamp, Coinbase, itBit and Bitfinex. Bitcoin traded about 27 percent above that low at $11,736 midday Thursday.

“Large dips of 25 percent or greater are a feature of the global, super liquid, near-instant cryptocurrency trading environment,” Nolan Bauerle, director of research at CoinDesk, said in an email. “There have been six such large sell-offs since the summer of 2016,” Bauerle said.

“The pattern is familiar: Bitcoin falls, finds a bottom and consolidates at previous all-time high. Traders who seek to increase their total bitcoin holdings take a fiat position, or move to another cryptocurrency, then buy back into bitcoin.

This massive, global traffic pushes prices back up.” U.S. dollar-bitcoin trading accounted for about 40 percent of trading volume, while the Japanese yen accounted for about 29 percent, according to CryptoCompare. Read more from…

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