Bitcoin briefly jumps more than 11% after news Square is testing the digital currency

  • Bitcoin briefly surges more than 11 percent Wednesday after news that Square’s payments app Cash is testing support for the digital currency.
  • The gains brought bitcoin within 10 percent of its record high hit last Wednesday.
  • However,┬áthe controversy over the best way to improve bitcoin’s transaction speeds and costs remains unresolved.

Bitcoin has again recovered quickly from a sharp drop.

The digital currency briefly surged more than 11 percent Wednesday to a high of $7,336.80 , according to CoinDesk. That’s within 10 percent of its record high of $7,879.06 hit last Wednesday. Bitcoin had fallen 30 percent below that record over the weekend amid controversy over the digital currency’s future.

Bitcoin (Image: MichaelWuensch/Pixabay)
Bitcoin (Image: MichaelWuensch/Pixabay)

In the established stock market, a decline of at least 10 percent from a recent high sends a stock into “correction” territory, and a drop of at least 20 percent marks “bear market” territory.

Wednesday’s gains in bitcoin came after news that Jack Dorsey’s company Square is testing support for bitcoin through its payments app Cash. Early on Wednesday, Credit Suisse analysts published a report on the Square news describing how the “bitcoin buying option could help stock.”

Read more: CNBC