Bitcoin surges 10%, blows through $7,000 level

Bitcoin prices surged higher Tuesday afternoon as the virtual unit extended the previous session’s sharp rally.

The No. 1 digital currency added close to 10%, taking it back above the psychological $7,000 level and the 50-day moving average—a closely watched momentum indicator. Today’s move higher is the largest in a single session since April 12.

Bitcoin is now track for its fourth consecutive winning session—the first time it has managed this since April 2018.

A single bitcoin












BTCUSD, +0.00%










 is now trading 10.3% higher since Monday at 5 p.m. Eastern Time on the Kraken cryptoexchange at $7,346.70.

Hash rate shows bitcoin set for rally

Earlier this morning, one analyst predicted the fortunes were about to change for holders of bitcoin thanks to the computers that mine for the digital currency.

“The price is trading at $6,715 and year to date it is down nearly 53.07%. However, I do think that the tide is about to turn for bitcoin and it won’t be long before we see a major move,” wrote Naeem Aslam, chief market analyst at Think Markets U.K.

“The evidence is in the hash rate which is consistently increasing, meaning, that miners are still very busy, and they hold the view that the price is going to rise,” he said.

Bitcoin, similarly to other cryptocurrencies are virtually mined by solving complex computations. The hash rate refers to the rate at which those cryptographic puzzles are solved and rewards are doled out to so-called miners in the form of new bitcoin or other digital assets.

Read: Here’s how much it costs to mine a single bitcoin in your country

U.K.’s FSB: Cryptos pose no material risk to financial stability

The Financial Stability Board (FSB) released a framework for monitoring cryptocurrencies Tuesday. FSB, the financial watchdog headed by Bank of England Gov. Mark Carney, said cryptocurrencies “do not pose a material risk to global financial stability at this time.”

FSB added that they have engaged the Basel Committee on Banking Supervision to gather data on potential exposure banks may have as a result of digital currencies.

While the report dropped no bombshells, Nigel Green, founder and CEO of DeVere Group, a financial consulting firm, said the report is further validation for the digital currency industry.

“The world of money has fundamentally changed—and despite what some crypto cynics want, it can’t and will not go backwards. Therefore, the FSB’s proactive and positive work in this sector must be championed,” said Green.

Altcoins follow bitcoin higher

After a sluggish start to the day that saw altcoins, or digital currencies other than bitcoin, lag, major altcoins are all in the green in Tuesday afternoon trading.

Ether












ETHUSD, +0.00%










 is up 6.5% at $506.56, Bitcoin Cash












BCHUSD, +1.00%










 is up 7.8% at $860.30, Litecoin












LTCUSD, +0.15%










has gained 7%, last trading at $88.64 and Ripple’s XRP coin












XRPUSD, +0.12%










is trading 8.6% higher at 51 cents.

In bitcoin futures, the Cboe Global Markets Inc. for July












XBTN8, +0.03%










finished up 10% at $7,332.50 and the comparable CME Inc. July contract












BTCN8, +0.27%










closed Tuesday up 9.5% at $7,305.

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