Looking for direction

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Bitcoin surged by more than 7% overnight in Europe as the world’s leading cryptocurrency tried to cap three weeks of declines, but a re-test of $42,500 may be necessary before the market establishes a clear direction.

The price of one bitcoin rocketed from $40,900 at 22:31 CET Wednesday to $43,865 at 06:04 CET Thursday, according to the Luxembourg-based Bitstamp exchange.

There was no clear fundamental catalyst for the pump, though some news organizations linked it to remarks by Gary Gensler, the boss of the U.S. Securities and Exchange Commission, who yesterday reiterated his support for futures-based bitcoin exchange-traded funds (ETFs).