Bitcoin price smashes $600 barrier and leaps to trade above $650 in one day

The recent bitcoin price rally continued in full force this weekend, as prices smashed through the $600 (£421) mark and rose to trade above $650 in a single day on Sunday.

Yesterday the price of a single bitcoin reached highs of $652.54, according to CoinDesk.

By the evening, the cryptocurrency was still trading up more than five per cent on its opening price of $611.78. Bitcoin hasn’t traded above $650 since early June 2014.

Read more: Bitcoin will become the sixth largest global reserve currency by 2030

The most recent rally has largely been attributed to surging demand in China. The increased investment has partly followed fears in China and Asia that the yuan could depreciate. Since 28 May, prices have risen by more than 20 per cent.

In another milestone, on Sunday bitcoin’s market capitalisation edged above $10bn for the first time since February 2014.

In March, the asset manager Needham Company claimed the price of bitcoin had been undervalued by $200 and should be closer to $655.