The Bitcoin price (BTC/USD) has hit a two-week high following a strong surge in the early hours of today’s trading.
The original cryptocurrency had a rather uneventful session yesterday, although it did post some modest gains on the day. The digital currency hit an intraday high of $6,500.87 in late trading, before finishing the session at $6,488.76, up from its opening level of $6,301.07.
The digital coin saw a dramatic rise in today’s early trading, with its price spiking to a high of $6,816.79. This was Bitcoin’s highest price level since August 7, according to data from digital currency tracker Coinmarketcap.
The reason for the spike has not immediately clear, although some crypto observers have suggested that it’s connected to the temporary shutdown of cryptocurrency exchange BitMex, which underwent a “scheduled maintenance” around the same time. As noted by Forbes, “this scheduled downtime forced the liquidation of a large number of short positions on the BitMex exchange, indicating a so-called short squeeze”. The publication added that if the spike was “directly attributable” to this vent, it could be followed by a quick correction.
While the Bitcoin price did see a pull-back in subsequent trading, it has so far managed to avoid a major correction. The price has been hovering around the $6,700 mark, which is still the highest level it has seen since August 8.
In today’s trading, the Bitcoin price stood at $6,690.01, as of 13:27 BST. The digital coin has gained 3.7% over the past 24 hours, Coinmarketcap data shows. As a result, its total market cap now stands at $115.2 billion, which represents 53% of the total value of the total value of all digital currencies.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.