Bitcoin Thursday hit its highest level since October as the cryptocurrency gained support amid global markets skittish about the effect the spreading Wuhan coronavirus may have on global trade.

Heading toward $10,000, a level that was last seen in late September, bitcoin hit a high of $9552.53 as of 8 p.m. EST before declining to $9,405.02 as of 11:10 p.m EST.

The price increase naturally has investors excited. CCN wrote that “it appears that conditions are right for this metric to breakout and possibly foreshadow the next bull run.” The price, if maintained, also means bitcoin could have one of its best months in history. Bitcoin was up 21% from the beginning of the month as of Jan. 15 when it was trading around the $8,500 mark and is now up about 30%.

How far bitcoin will grow is, as always, open to speculation. Bitcoin does not always react in line with equities markets but is at time seen as a safe-harbor investment when equities markets are facing issues. Thomas Lee, co-founder of market research firm Fundstrat Global Advisors LLC, wrote on Twitter that demand for a “safe haven” is boosting bitcoin.

Bitcoin is best performing asset class YTD +26%… demand for "safe haven" is boosting Bitcoin and arguably, #Bitcoin is seen as a better "safe haven" than $Gold #gold

– Gold is up a decent 3% vs a whopping 26% for Bitcoin pic.twitter.com/GWKEfYGcut

— Thomas Lee (@fundstrat) January 28, 2020

Others disagree. Peter Schiff, chief executive officer of Euro Pacific Capital, wrote that those buying bitcoin are merely speculating that others will buy it as a safe haven.

For now Bitcoin may be the best performing asset this year, but it has nothing to do with safe haven buying. Those buying #Bitcoin are merely speculating. Some may be speculating that others will buy it as a safe haven, but none actually are. There is nothing safe about Bitcoin!

— Peter Schiff (@PeterSchiff) January 29, 2020

Concerns about global trade issues may not be the only driving factor behind the bitcoin’s current rise. CME Group Bitcoin Futures, launched in December, continue to grow in popularity among institutional investors. The futures contracts are notably settled in bitcoin, driving further demand for the cryptocurrency.

The forthcoming bitcoin “halving” in May may also be playing a role. The halving will cause the supply of new bitcoin available through bitcoin mining to be halved, hence the name. The halving creates scarcity of new supply and Economics 101 dictates that a scarcity of supply causes prices to increase.

The price of bitcoin is often compared to a rollercoaster ride and this current price spike may yet again be part of the ride. But if bitcoin breaks through $10,000 again, the rise this time around may see a return to prices last seen in 2017.

Image: Pxhere