Bitcoin, the digital asset synonymous with cryptocurrency, has broken out past the $4,000 mark for the first time in two weeks.
The price of Bitcoin rose about 5% to $4,061.66 at the time of publication, hitting a market cap of $70.8 billion, as per CoinMarketCap.
READ: CryptoCann™ Report: Atari to offer blockchain-based games; former Miami Dolphin Ricky Williams launches CBD products line
The cryptoverse is wagering a few guesses as to what’s behind the Bitcoin rally.
One theory is that the Federal Reserve’s decision Wednesday to raise rates may be pushing investors toward assets with little connection to the traditional markets.
The Fed raised rates.— Pomp ???? (@APompliano) December 19, 2018
Long Bitcoin, Short the Bankers!
Mati Greenspan, senior market analyst at social trading platform eToro, told CNBC in an email that the rally may be a result of traders closing their short positions ahead of the holidays.
"This is an extremely significant movement that may end up creating a floor for the battered down cryptocurrency," said Greenspan.
Regardless of the reason for the surge, a rising tide lifts all boats, boosting shares of Bitcoin Cash, Ethereum, Stellar, Litecoin and several others in CoinMarketCap’s top 25 list.
Notorious for its volatility, the price of Bitcoin has plummeted nearly 80% from its all-time high of $20,000 last December.
Contact Lenore Fedow at [email protected]