Bitcoin price suddenly surges amid positive predictions

'Newcomers to cryptocurrency should see no better opportunity that to invest now,' claims market analyst

Bitcoin hit a record high price of close to $20,000 in late 2017 (Getty Images)

Bitcoin has experienced a sudden surge in value after several days of plummeting prices.

The world’s leading cryptocurrency climbed $600 (£460) in the space of a few hours to return above $7,000, having briefly fallen to its lowest level since May.

The price crashes on Friday and Monday came after market uncertainty surrounding developments in China, which saw a renewed crackdown on illegal exchanges in the country.

Despite the significant dips. some cryptocurrency experts claimed that it was the “perfect time” to invest.

“Once again the value of bitcoin has plummeted – due to the nature of cryptocurrency, this is not the first, nor will it be the last time this occurs,” Peter Wood, CEO of online trading platform CoinBurp, told The Independent.

“However, new-time investors can be comforted by the fact that its value will most likely rise again, and newcomers to cryptocurrency should see no better opportunity that to invest now.”

The price of bitcoin is notoriously difficult to predict due to its volatility, which has seen it fluctuate between $3,000 and $20,000 over the last two years.

Its current price of $7,300 is more than double the price it was this time last year, yet less than half the price it was in late 2017.

“While nobody really knows what direction the value of any cryptocurrency will head in the near future, past trends display a possible large increase within the next 12 months at least,” Mr Wood said.

Some of the more optimistic predictions for bitcoin include venture capitalist Tim Draper’s forecast that the cryptocurrency will reach $250,000 by 2023, and cyber security pioneer John McAfee’s bet that it will reach $1 million by the end of 2020.

A more conservative estimate comes cryptocurrency analyst PlanB, who tweeted on Monday: “Call me crazy, but it wouldn’t surprise me if bitcoin closes 2019 at $10,000... Opportunities like this [for investors] are rare.”