Bitcoin surges 15% to $8,574 in bounce back from lowest in five months

Bitcoin surged 15 per cent, recovering from its lowest levels since May, amid a general risk-on rally in financial markets.

As is usually the case in cryptocurrencies, traders cited a bevy of reasons, from speculation that prices were being pumped ahead of the expiration of some weekly call options to the arbitrage of prices between various exchanges.

“This positive sentiment, along with a good buying opportunity at the key $7,500 support level, has led to there being more buyers than sellers — which, at the end of the day, always leads to markets going higher,” said Jeff Dorman, chief investment officer at Arca, a Los Angeles-based asset manager that invests in cryptocurrencies.

Bitcoin climbed to $8,574 in New York on Friday. The largest cryptocurrency dropped to $7,305 on Wednesday, the lowest in five months. Alt coins also rallied, with Ether jumping 12 per cent, Litcoin gaining 14% and Zcash increasing 11 per…