A sudden rise in Bitcoin prices rekindled optimism among cryptocurrency watchers, and one of Bitcoin's biggest street bulls says cryptography could triple this year.

A march to US$ 25,000 represents about a 225 percent increase in its price on Thursday. Even if it returns to its December highs, the target implies at least a 25 percent profit. Bitcoin trades around US$ 7,662 in the middle of Thursday afternoon.

The leading cryptocurrency Even after Thursday's increase, prices remain 61 percent below those peaks.

Bitcoin fell into a bear market during 2014 and 2015 after Mt.Gox, a bitcoin exchange, suspended operations and filed for bankruptcy. Prices bottom out in mid-January 2015. Current levels are about 43 times higher than at that low level.

But the recent price weakness in late March and the first half of April may have rekindled fears of a prolonged slowdown. Lee says these fears are not justified: the pressure on cryptomarkets was probably linked to the tax season.

Investors had unloaded some of their bitcoin holdings in recent weeks to cover the capital gains taxes associated with those positions, he said.

According to his calculations, U.S. households owed as much as $25 billion in capital gains taxes on their cryptocurrency investments. With Tax Day on April 17, which is later than usual this year, just a few days away, that selling pressure has begun to abate.

The April bitcoin trade formed a major technical investment that suggests further upside, according to Fundstrat research. Bitcoin stabilized above US$ 6,500 in the last two weeks, showing a support level and overcoming resistance to the March downtrend. Fundstrat sees the next major resistance band at around US$ 9,000.

Bitcoin jumped almost 11 percent more on Thursday. Early in the day, prices rose more than 17 percent to US$8,000. The last time the cryptocurrency moved above that level was on March 28.