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Last night saw the biggest hour of trading in bitcoin’s entire history, with more than $270 million changing hands in 55 minutes.
More than 38,500 coins were traded last night to help boost the price up by more than $1,000.
There doesn’t appear to be any single explanation for the sudden spike in price, however, as cryptocurrencies are extremely volatile and subject to vast price swings at the drop of a hat.
“In this scenario traders with short positions will start to lose money and liquidate their positions by buying bitcoin,” Ed Cooper, head of mobile at fintech startup Revolut, told The Independent.
“This causes the price to rise further and as more people start to notice the rise they buy in for a quick gain. This continues the cycle.”