Phew: Bitcoin breaks back above $4,000

Bitcoin prices tumbled last week as new regulations in China pushed prices below the $3,000 level for the first time in months, but the cryptocurrency is now back on the rise.

Investors last week feared China was shutting all of its exchanges as regulators crack down on the industry, but news that the exchange ban would not impact all forms of crypto trading sent relief through the market.

Bitcoin was up 9.32 per cent at $4,011.10 in afternoon trading, according to CoinDesk, and its price has risen more than 30 per cent since Friday.

Only earlier this month the cryptocurrency shot up to an all-time, eye-watering high of more than $5,000.

Bitcoin and other cryptocurrencies' prices have benefited from more mainstream attention this year, but now that is also coming with increased scrutiny from regulators.

Today, the Bank of International Settlements said the role of central banks in cryptocurrencies was "far from clear", but the issue of whether a central bank should issue a digital alternative to cash was "pressing".

Last week the Financial Conduct Authority warned customers about initial coin offerings, which allow companies to issue digital tokens in return for equity, saying they were only for experienced investors prepared to lose their entire stake.

Jamie Dimon, the chief executive of JPMorgan Chase, also put a dent in the cryptocurrency's price after he labeled the digital currency a "fraud" and said he would fire employees who traded in cryptocurrencies.

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