Volatility has roared back into the world of digital currency.
After keeping a fairly low profile for the past few months, Bitcoin exploded yesterday, with its value gaining 17% in 30 minutes, putting it at its highest level since early December, momentarily hitting $5,080.
After some mild selloffs taking advantage of the spike, the cybercurrency was on the rise again Tuesday. As of 11:00am ET, Bitcoin prices stood at $4,746, according to CoinDesk.
Most major cybercurrencies are following the same pattern. Ethereum is up more than 9% since Monday morning. Bitcoin Cash is up nearly 18%. And Litecoin is up 14%.
There did not appear to be a specific reason for the surge other than improving investor sentiment in digital currencies. Bitcoin has been trading steadily in the $3,500 to $3,800 range for several months after its collapse last year. It began to show signs of life in March with its first monthly gain since July 2018. Once it topped $4,000 yesterday, buyers went into a frenzy. That could happen again if it lingers above $5,200 for any length of time on Tuesday.
The news is encouraging for Bitcoin enthusiasts, but it might be premature to say the currency is an investor darling once again. Bitcoin is still 35% lower than it was a year ago and nearly 75% below its all time highs in 2017.