Bitcoin hits fresh 2019 high as sudden rally shows staying power

Cryptocurrency traders may not know what caused the abrupt surge in Bitcoin on Tuesday, but they’re going along for the ride anyway.

The biggest virtual currency climbed to a fresh 2019 high on Wednesday, building on a spike yesterday that many market participants struggled to explain. Bitcoin increased as much as 5.9% to $5 087.54 at 11:10 a.m. in Hong Kong, according to Bloomberg composite pricing. Rivals coins including Ether and XRP also advanced.

Read: Bitcoin surges as cryptocurrency market suddenly springs to life

With the Bloomberg Galaxy Crypto Index now up more than 77% from its low during the depths of last year’s crash, the debate over whether virtual currency prices have bottomed is heating up. Crypto diehards see Tuesday’s surge as confirmation that a new bull market has begun, while bears argue that entrenched skepticism among regulators, institutional investors and consumers will make any rally temporary.

© 2019 Bloomberg L.P