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Bitcoin spikes above $1,000

Mar 23, 2017, 17:16 IST

Bitcoin is trading up 1.2% at $1,049 a coin as of 7:37 a.m. ET after aggressive selling on Wednesday slammed the cryptocurrency below the $1,000 level for just the second time since the beginning of Febraury.

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Traders continue to grapple with the possibility that developers could set up a "hard fork," or alternative marketplace for bitcoin, as well a crackdown on trading in China and the US Securities and Exchange Commission's upcoming rulings on bitcoin ETFs.

Thursday's buying appears to be technical-based as a good deal of support comes into play in the $1,000 area. The cryptocurrency has not put in a close below that level since Febraury 9.

2017 has been a voltile year for bitcoin. It rallied 20% in the first week before crashing 35% amid fears China was going to crackdown on trading. Bitcoin then rallied another 75% from mid-January until mid-March, putting in a record high $1,327 on the morning of the SEC's rejection of the Winklevoss ETF.

The cryptcurrency has fallen about 20% since then as participants remain on edge over the possibility of an alternative marketplace and the two upcoming SEC rulings on bitcoin ETFs, the first which is due no later than March 30. Neither is expected to be approved.

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Bitcoin has been the top-performing currency in each of the last two years.

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