LONDON: Bitcoin hovered above US$7,000 on Monday (May 13), close to nine-month highs, as the biggest cryptocurrency’s 2019 rally gathered steam.
Bitcoin was last up 1.1 per cent at US$7,056 on the Bitstamp exchange after soaring 14 per cent on Saturday – its second largest daily jump this year – to its highest since early August.
Analysts and traders said the outsized move over the weekend did not appear to be the result of any immediate news factors.
David Thomas, of London-based cryptocurrency broker GlobalBlock, said the breaching of a key US$6,000 support level last week had fueled interest among investors.
Other market participants said perceptions of bitcoin’s resilience in the wake of last week’s US$40 million theft from the major Binance exchange was supporting sentiment. Cryptocurrency markets have previously fallen after high-profile security breaches.
Bitcoin has almost doubled in price this year, underscoring its volatility after a bruising 2018. In 2018, it lost some three-quarters of its value amid tighter regulation across the world.