Investing.com - The price of bitcoin offshoot bitcoin cash jumped higher on Thursday, while bitcoin slid lower after rising above the $8,000 level to fresh record highs earlier this week.
On the U.S.-based Bitfinex exchange, Bitcoin Cash surged 21.58% to $1,577.00 by 05:46 AM ET (10:46 AM GMT).
Prices were boosted after the bitcoin alternative was integrated with digital wallet provider Bitwalla and the exchange Bitstamp on Wednesday.
Meanwhile, Bitcoin was down 1.56% at $8,097.50 on the Bitfinex exchange. On Tuesday, it hit $8,380.00, the highest level in its nine-year history.
Bitcoin has risen more than 700% in volatile trade this year, with three separate corrections of more than 25% all giving way to subsequent rallies.
Bitcoin’s rapid rise has fueled fears over an asset bubble. The digital currency is still rarely used to purchase actual goods or services, making it almost entirely a vehicle for speculation.
At current prices bitcoin has a total market capitalization of around $136 billion.
Recent volatility has arisen from an uptick in investors switching to alternative cryptocurrencies, most notably bitcoin cash, sending it surging.
Prices have been boosted by a recent proliferation of initial coin offerings, in which start-ups create a new virtual coin or token and offer it for public sale.
According to data from Coindesk there have been more than 160 ICOs this year, which have collectively raised more than $3 billion.
The upsurge of virtually unregulated token sales sparked a recent warning from the U.S. Securities and Exchange Commission that many offerings are susceptible to manipulation or fraud.
Prices have also been boosted by hopes for increased inflows from institutional investors after the world's largest derivative exchange operator CME Group (NASDAQ:CME) announced plans to launch a bitcoin futures contract this year.
Elsewhere in cryptocurrency trading, Ethereum, the second most valuable cryptocurrency by market cap after bitcoin, was up around 5.23% to $400.85, while Bitcoin Gold jumped 18.56% to $275.40.