Bitcoin's (EXANTE: Bitcoin) price has bounced back above $4,000 following market losses linked to the recent regulatory crackdown in China, CNBC reports.
The price surged from $3,600 to $4,040, recording a 13 percent increase within the past 24 hours as global markets stabilized.
All major regional markets including Japan, the US, China and South Korea demonstrated increase in demand from traders, as bitcoin price rose by over 10 percent on every bitcoin exchange market globally.
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.
The cryptocurrency traded as low as $2,972, marking a 36% fall from Bitcoin’s close on September 7, and a collapse of 40% from the highs struck earlier this month.
Chinese Bitcoin exchanges were ordered to stop all trading from September 30.
Earlier this month China’s central bank the People’s Bank of China proclaimed initial coin offerings (ICOs) illegal and demanded all related fundraising activity to be halted immediately.
Additionally, the chief executive of JPMorgan Chase & Co (NYSE: JPM) Jamie Dimon said that Bitcoin was 'a fraud' and it would blow up. Speaking at a bank investor conference in New York, Dimon added: “The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”