Over the last 24 hours, Bitcoin, the leading cryptocurrency, saw an unprecedented price surge of more than $1,000.

On Thursday morning New York time, Bitcoin started trading in the range of around $6,780, which was to remain the lowest level of that day. The price hit the intraday high of $8,011 on the Coinbase cryptocurrency exchange before cooling off partially, and continued to trade above $8,000 in the early hours of April 13.

Against a daily average global trade volume worth $4 billion USD, Thursday’s worldwide BTC trade volumes clocked $8.1 billion during the bull run. Traders continue to closely watch the crucial level of $7,500 – if that level is held, then Bitcoin is expected to surge further. Other technical indicators suggest that bitcoin may face resistance around two crucial levels of $7,600 and then at $8,150. On the downside, the cryptocurrency is expected to maintain support at levels of $7,500 and then at $7,100.

Other cryptocurrencies gained in similar magnitudes. Ethereum was up more than 10 percent, Ripple gained around 12 percent, EOS surged 22 percent, and others like Litecoin, Bitcoin Cash, Stellar and IOTA too surged in the range of 8 percent to 16 percent.

Tax-Related Concerns on Bitcoin Transactions

There recently have been concerns about how past bitcoin transactions will be treated by U.S. tax authorities. These tax-related concerns, along with the crackdown on cryptocurrency trading across the globe, have tanked Bitcoin's value by two-thirds from the all time high of above $19,000 seen in December last year. (For more, see Will the IRS Come After Your Bitcoin Soon?)

Some market participants believe that Thursday's sudden upward price move “could be an unwinding of that (tax-related) pressure,” and the spike had a compounding effect as it “forced traders who had bet against the cryptocurrency to buy back into the market,” reports CNBC.

"The ratio of short margin trades versus longs has been increasing recently," said Nick Kirk, quantitative developer and data scientist at Cypher Capital, a cryptocurrency trading firm. "Buying volume ticked up today and a lot of these short trades got liquidated, helping fuel the rally."

IRS considers cryptocurrencies as property, making these transactions taxable. Tom Lee, the head of research at Fundstrat Global Advisors, predicts that U.S. households possibly owe around $25 billion in capital gains taxes for their cryptocurrency holdings.

As the U.S. tax deadline of April 17, which often accounts for tax-related selling, comes closer, the tax pressure is expected to lighten, which may lead to increased buying. Market participants see Thursday’s upward move as a step in that direction. While regulatory uncertainty about cryptocurrency trading across the globe is expected to continue, as the April 17 deadline passes, market participants expect a continued recovery in bitcoin valuations.

Along with the short term punters, long term investors remain firm about the continued development of the new-age bitcoin infrastructure, which remains on the fast track with increasing adaptability of the cryptocurrency across the globe.

Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns no cryptocurrencies.

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