Bitcoin surges over US$5000, highest level since November

Bitcoin surged on Tuesday to its highest level since late November - an increase some have said April Fools' Day is responsible for.

As those in the United States enjoyed April Fools' Day, Bitcoin soared by more than 23 percent to briefly cross USD$5000 (NZ$7407), its highest value since November.

The cryptocurrency has since dropped to US$4749, but some traders are excited as Bitcoin has seen gains each month this year after a rough 2018, reports Forbes.

eToro senior market analyst Mati Greenspan said the increase may have been caused by jovial traders.

"It looks like April Fools' Day put the community in good mood," said Greenspan.

Others speculated the rise was caused by an April Fools' Day story on the website Finance Magnates that said the United States Securities and Exchange Commission was approving Bitcoin exchange-traded funds. An exchange-traded fund is a form of investment fund that can be traded on a stock exchange.

But some analysts said the cryptocurrency had simply gained momentum over the last few months and US$5000 was an expected milestone to hit.

Regardless, it is still far off its all-time high of approximately US$20,000

Ethereum and Ripple, two other large cryptocurrencies, also jumped.