SYDNEY (May 12): Bitcoin surged more than US$1,000 this weekend to the highest level since August, as cryptocurrencies extended their rebound from a slump last month amid the New York attorney general’s investigation of a key part of the market.
Bitcoin rose as much as 6.9% to US$7,445, before trading at US$7,323.86 as of 2:15 p.m. Hong Kong time on Sunday, according to Bitstamp. That compares with US$6,290.24 at Friday’s close. All five members of the Bloomberg Galaxy Crypto Index are up more than 8% this weekend, based on pricing from Bitstamp and Bitfinex.
The price of Bitcoin, the biggest cryptocurrency, has more than doubled since its Dec. 14 trough and is now rising for a sixth-straight day on Bitstamp. The decade-old token surged as intensifying trade tensions hammered global stocks in the past week to set fresh milestones for Bitcoin’s wild ride after it crashed last year from 2017’s peak above US$19,000.
Virtual currencies slumped late last month as New York Attorney General Letitia James alleged an US$850 million coverup by the companies behind virtual currency Tether and Bitfinex -- one of the world’s largest crypto exchanges. The Bloomberg Galaxy Crypto gauge tumbled 11% in the week to April 26 for its biggest one-week slide this year.