Bitcoin surged 7.11% to $55,162.92 at 20:01 GMT on Wednesday, up $3,661.73 from its previous closing price.
The world’s largest and most prominent cryptocurrency inched up 98.9% from its January 4 year low of $27,734.
Bitcoin surged to its highest level in five months on Wednesday, driven in part by market sentiment following news that a hedge fund controlled by billionaire George Soros is trading in bitcoin.
Investors also expect a seasonal rally in cryptocurrencies in the final quarter of the year.
In addition, U.S. Bancorp has established a cryptocurrency depository service for institutional investment managers holding private funds in the U.S. and the Cayman Islands.
Ben McMillan, chief investment officer at IDX Digital Assets, factor-based crypto-index strategy, said that based on an analysis of on-chain data, he is seeing a steady rise in the number of new Bitcoin addresses after a huge drop in the first half of the year, coupled with a growing number of Bitcoin moving off-exchange.
New addresses and Bitcoin moving away from the exchanges are important clues.
Meanwhile, Ether, the coin linked to blockchain network Ethereum, rose 2.15% to $3,591.72 on Wednesday, up to $75.63 from its previous closing price.