At one point the cryptocurrency was valued at $5,000 (£3,810) for the first time since November. It finished the day up 16 percent, with a price of around $4,800 (£3,656). The value of a number of other cryptocurrencies also soared as a result.
Cryptocurrency expert Oliver von Landsberg-Sadie, from BCB Group, predicted the value increase was triggered by an order worth as much as $100 million (£76.16 million).
He suggested this was spread over three coin exchanges, Coinable and Kraken in the US and Bitstamp in Luxembourg.
Mr Landsberg-Sadie commented: “There has been a single order that has been algorithmically-managed across these three venues.
“If you look at the volumes on each of those three exchanges there were in-concert, synchronised, units of volume of around 7,000 Bitcoin in an hour.”
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Bitcoin value had remained relatively stable this year, at between $3,300 (£2,513) and $4,200 (£3,198).
In response to the Bitcoin surge other cyber currencies increased in value.
Ethereum’s Ether and Ripple’s XRP, the second and third biggest currencies, increased in value by over 10 percent.
Market analyst Mati Greenspan, who works for eToro in Israel, said: “Usually Bitcoin is the leader of the market and altcoins tend to follow, as far as direction and sentiment is concerned.
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“Today Bitcoin is in the driving seat.”
A significant proportion of the trading was likely carried out by computer algorithms.
According to Charlie Hayter, who founded the cryptocurrency website CrytoCompare, an estimated six million trades took place an hour when the currency surged.
Last month Cboe Global Markets, which offered the first US bitcoin futures contracts three years ago, said it would no longer offer contacts in the currency.