LONDON – The price of Bitcoin is surging on Monday after a week in which it lost more than $1,000 in value and dropped below $3,000 per coin for the first time in over a month.
Bitcoin collapsed spectacularly last week as news of a regulatory crackdown in China broke. The cryptocurrency dropped 16% against the dollar on Thursday after Chinese media reported that the country’s regulators were moving closer to shutting down exchanges.
But Bitcoin is now surging again. By 9.00 a.m. BST (4.00 a.m. ET), Bitcoin is up by more than 6% against the dollar – its key pairing in the currency markets – to trade at $3,950 per coin, just below the psychologically significant $4,000 mark, as the chart below illustrates:
- Markets Insider
Bitcoin is notoriously volatile, frequently swinging wildly between positive and negative during trading sessions.
Bitcoin’s rise coincides with a report from the Bank of International Settlements which argues that global central banks must think seriously about their approach to the growing cryptocurrency markets.
“Central banks will have to consider not only consumer preferences for privacy and possible efficiency gains – in terms of payments, clearing and settlements – but also the risks it may entail for the financial system and the wider economy, as well as any implications for monetary policy,” the BIS said.