The original and biggest cryptocurrency was last up 4.6% at $10,300, its highest since Sept. 19.
It was not immediately clear what sparked the jump. Crypto traders pointed to continuing momentum for bitcoin that began in January, when the United States killed the top commander of Iran's elite Quds Force of the Revolutionary Guards, triggering a sell-off in traditional markets.
Investors also attribute a 50% cut in the production of bitcoin due in May as a driver for demand. The rule, written into the cryptocurrency's underlying code, slashes the number of new coins awarded to miners behind global supply of the cryptocurrency.
(Reporting by Tom Wilson; Editing by Tommy Reggiori Wilkes)