Bitcoin prices have soared, marking their best week in months.
Since Wednesday, the cryptocurrency’s price has increased by about 11%. It rose nearly 5% the previous day.
Bitcoin is still far from its peak during the pandemic. It currently trades for around $47,000 and reached a peak of $67,000 in early 2021.
However, it has mostly recovered from the “cryptocurrency winter,” which was the period of excitement that followed the crash. Bitcoin is currently up nearly 110% over the past year, with much of that gain occurring since October.
Other cryptocurrencies also performed well last week. Ethereum, the second largest digital currency, rose almost 8%.
Interest in virtual currency trading also seems to be increasing significantly. About $72 billion of digital currencies were traded in the past day, an increase of more than 15%, according to tracking site CoinMarketCap.
The cryptocurrency rally comes ahead of a major “halving” event scheduled for mid-April. As a result, Bitcoin mining rewards will be cut in half for the first time in almost four years.
Cryptocurrency experts are divided on whether this event is likely to lead to a short-term price decline, or whether interest in the technology will increase and prices rise.