Bitcoin spikes 14% in less than an hour

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April 12, 2018 1:02 PM

The cryptocurrency is flirting with the $8,000 mark.

Experts say the move is fueled by the impending tax deadline.

Bitcoin surged more than 14% in less than an hour Thursday morning, briefly passing the $8,000 level that it has not seen since March, before sinking to around $7,700.

It's the biggest intra-day gain for bitcoin in almost two months, according to historical data from CoinMarketCap.

"The swell is likely due to the impending completion of tax season. My prediction is that with only two business days left before the tax deadline, many Americans have paid their taxes and decided to invest into bitcoin and projects they believe in long term, or try their hand in an emerging market that couldn’t possibly slide any further," Coinsource CEO Sheffield Clark told Business Insider.

"Also, the positive swing back is reflected by the investments of major firms like the Rockefeller-backed VC and the Soros fund."

Despite the steep gains, the price is still less than half of its record high of $19,843 set in December. Earlier this week, Barclay's said bitcoin is unlikely to ever top that record again, based on modeling that compares the cryptocurrency to the spread of a virus like influenza.

Other major cryptocurrencies were also in the green Thursday, though not nearly as high as the flagship bitcoin. Ethereum was up 7% and Ripple's XRP was up about 3%.

Earlier this month, Fundstrat founder Tom Lee also predicted a Mid-April surge in bitcoin price as investors sell their digital coins to pay an estimated $25 billion in US taxes they had racked up during the height of the crypto craze.

Bitcoin is down 42% since the beginning of 2018.

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