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Investing.com - Bitcoin prices broke through the key $500-level for the first time in almost two years on Sunday, as investor confidence remained strong amid bullish chart signals.

Prices of the virtual currency were supported by indications of strong volume growth in recent sessions due to increased trading activity in China, where a devalued yuan has seen investors search for alternative assets.

Bitcoin (BTC/USD) rose $75.41, or 16.65% on Bitfinex to trade at $528.30 by 14:30GMT, or 10:30AM ET Sunday. Prices hit an intraday high of $543.00 earlier, a level not seen since August 2014.

The price of a bitcoin on Slovenia-based BitStamp jumped $65.40, or 14.47%, to trade at $517.47, while prices on Bulgaria-based BTC-e surged $65.10, or 14.47%, to trade at $515.41.

The price of bitcoin has been relatively stable so far this year, staying in a range between $420 and $450.

Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.