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Bitcoin climbs above $7 000 as cryptocurrency rally extends

16 May 2019

Bitcoin has broken through the $7,000 (£5,383) mark after hitting its highest level in nine months over the weekend.

The advance comes only a few days after the digital asset broke through $6,000, and looks set to boost investor interest in conferences on the technology underlying the biggest crypto asset taking place in NY this week.

Bitcoin has jumped almost 40% in the past week and has more than doubled in the past year, driving speculation of a comeback to 2017 levels. Bitcoin's latest surge started Saturday, when the two US exchanges carrying futures are closed, making it potentially hard for short sellers to cover their wagers.

Bitcoin gained more than 35% in April, due largely to a 20% jump that caused puzzlement among traders and underscored flaws in cryptocurrency markets.

Increased institutional interest may be driving the rally, with record cash inflows to Bitcoin Investment Trust (GBTC), a leading exchange allowing investors to hold Bitcoin indirectly.

David Thomas, of London-based cryptocurrency broker GlobalBlock, said the breaching of a key 6,000 US dollars support level last week had fueled interest among investors. This occurs when the 50-day simple moving average has crossed above the 200-day moving average.

It remains to be seen how many other penny stocks will incorporate "Bitcoin" into press releases. Cryptocurrency markets have previously fallen after high-profile security breaches.

Bitcoin rallied past $8,000, extending its longest winning streak since 2013 while giving fresh momentum to a cryptocurrency market that crashed only previous year.

Bitcoin climbs above $7 000 as cryptocurrency rally extends