Bitcoin is soaring, and on track for its biggest gain since April
- Bitcoin surged as much as 10% Wednesday, its biggest daily gain since mid-April.
- It has fallen 40% since November 14, a few days before a hard fork in its rival bitcoin cash.
- Over the long run, cryptocurrencies are in good shape because the blockchain industry is growing at a rapid pace, an analyst said.
- Watch bitcoin trade live.
Bitcoin, the biggest cryptocurrency by market value, surged as much as 10% Wednesday to an intraday high of $4,725 a coin, making for its biggest daily gain since mid-April.
Wednesday's surge comes after Bitcoin and its rival cryptocurrencies have gotten hit in recent weeks. Bitcoin has seen 40% of its market value wiped out since November 14, a few days before the hard fork in its rival bitcoin cash. The digital currency touched a low near $3,600 on Monday, its weakest since September 2017,
"The main driver of the market moves is technical," said Mati Greenspan, a market analyst at the multi-asset brokerage eToro.
Bitcoin's price has been sliding this month amid a lack of any new headlines and today's surge is a correction of some of that selling, according to Greenspan. He says cryptocurrencies are in good shape over the long term because the blockchain industry is growing at a rapid pace and the innovation to transfer value through the internet without any intermediaries has great potential to grow.
"We are still scratching the surface on it," he said.
It has been a tough year for digital-currency investors, who saw prices explode in 2017 as cryptomania swept over the world. Bitcoin, for example, began 2017 worth less than $1,000 a coin before soaring more than 2,000% to a high of $19,511.
This year has been a different story, however, with the cryptocurrency's value having plunged by 68%.
"Bitcoin and all cryptocurrencies are considered to be high risk," Greenspan said, adding that investors should always diversify their portfolio when investing in risk assets.
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