Bitcoin skyrockets 20% to hit 3-week high on bullish wave

Investing.com - Bitcoin prices surged to the highest level in three weeks on Monday, as investor confidence remained strong amid bullish chart signals.

Bitcoin (BTC/USD) rallied to a session high of $309.90 on Slovenia-based BitStamp, the most since January 3, before trading at $297.70 during U.S. morning hours, up $46.70, or 18.61%.

Bitcoin prices are up almost 50% since hitting a 21-month low of $152.40 on January 14.

The price of a bitcoin on Bulgaria-based BTC-e jumped $41.70, or 16.9%, to trade at $288.54, while prices on Singapore-based itBit rose $35.34, or 13.5%, to trade at $297.21.

According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency surged $42.12, or 16.55%, to trade at $296.63.

The recent surge coincided with news that bitcoin service provider Coinbase Inc. will launch the first licensed bitcoin exchange in the U.S. on Monday.

Coinbase is backed by $106 million from the New York Stock Exchange as well as various banks and venture-capital firms, bringing much-needed legitimacy to the virtual currency market.

Meanwhile, euro-denominated Bitcoin prices (BTC/EUR) rose €40.64, or 15.81%, to trade at €297.70 on U.S.-based Kraken Exchange, the highest since January 3.

Elsewhere, yuan-denominated Bitcoin prices on Shanghai-based BTC China advanced 308.16 yuan, or 19.92%, to trade at 1,855.00 yuan, while prices on Beijing-based OKCoin tacked on 326.65 yuan, or 21.34%, to trade at 1,857.53 yuan.

Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.

Bitcoin’s market cap has been on a steady decline in recent months, even as the virtual currency has been getting more popular with merchants and retailers, including PayPal, Expedia, Overstock.com and Dell.