Bitcoin - trading och analys

Bitcoin, which hit a record high of $58,354 in February, could in the future become the preferred currency for international trade or face a "speculative implosion", Citi said.

"There are a host of risks and obstacles that stand in the way of bitcoin progress," Citi's analysts wrote. "But weighing these potential hurdles against the opportunities leads to the conclusion that bitcoin is at a tipping point."

The world's largest cryptocurrency was up 6.8% at $48,330 in early afternoon trading. Smaller rival ether rallied 6.8% to $1,517.

Bitcoin's recent performance has come with the growing involvement of institutional investors in recent years, contrasting with its heavy retail investor focus for most of the past decade, Citi said.

If businesses and individuals gain access via digital wallets to planned central bank digital cash and so-called stablecoins, bitcoin's global reach, traceability and potential for quick payments would see it "optimally positioned" to become the preferred currency for international trade, Citi added.