Bitcoin surged the most on an intraday basis since December after breaking through key technical levels.

The biggest cryptocurrency climbed as much as 16.9%, piercing both the US$7 000 and the $8 000 levels in a matter of minutes. Bitcoin swung wildly between gains and losses in December while reaching a record high of almost $20 000 before crashing.

Thomas Lee, head of research of Fundstrat Global Advisors, cited a combination of Santander’s plan for a blockchain-based payment application, tax-related selling almost over and speculative short investors being squeezed out of the market for the surge.

Some backers of the digital token noted that the bearishness may be fading after the recent swoon that drove the price down more than 60% in a few months.

“Serious money is now entering the market for the first time,” Jeffrey van de Leemput, an analyst at Cryptocampus, a business that offers trading courses, said in an e-mail. “A couple days ago I helped set up a 200k btc transaction for Chinese buyers. … Soros etc are coming in, we will now see the start of the real bubble.”

George Soros, the billionaire investor who called cryptocurrencies a bubble in January, was said last week to have authorised his $26bn family office to trade digital assets. — Reported by Lily Katz, (c) 2018 Bloomberg LP