Bitcoin shows largest daily increase since 2011
The world's largest cryptocurrency briefly surpassed $10K
Bitcoin, the world's largest cryptocurrency, has gained more than 40 per cent in price, recovering most of its recent losses.
According to data provided by CoinMarketCap, the unexpected surge started on Friday, October 25, when the rate was hovering around $7,500. At some point on Saturday, October. 26, the price reached $9,977 (£7,770, €8,994).
However, on some major exchanges, including Bitstamp and BitMEX, the rate was even higher. The price of Bitcoin reached $10,350 and $10,600, respectively. That was the largest daily increase for the cryptocurrency since 2011.
By Monday, October 28, Bitcoin's price has seen moderate correction. The top coin is traded around $9,440 at press time, with its dominance on the market exceeding 68 per cent.
The experts cite different reasons behind the unexpected surge. However, most of them agree that China's support for blockchain has played an important role in the event.
What is your sentiment on BTC/USD?
On October 25 Chinese president Xi Jinping urged his government to develop blockchain technology. He wants China to become the leader in the area in order to set rules and standards on a global level.
The crypto community is also actively discussing 4Chan Prophecy, a blog post published by an anonymous user early in 2019 which contained remarkably accurate price predictions for Bitcoin. The post said that in October 2019 the price of the cryptocurrency will reach $16,000.
FURTHER READING: Crypto market update: BTC and ETH facing breakout tests