Early selling pushed bitcoin down nearly 5% to $752.46 per coin.
But buyers emerged at one-month lows early on in US trade, and
have been in control throughout the session. The cryptocurrency
now trades up 4.7%, or $37, at $826 per coin as of 3:07 p.m.
Bitcoin has had a wild start to 2017. It rallied more than 20% in
the first four trading days of 2017, putting in a high of
$1161.88 per coin amid massive interest from China. However,
speculation began to mount last Friday that China was going to
crackdown on the cryptocurrency after the
People’s Bank of China warned investors to exercise caution
when investing in virtual currencies.
Then on Wednesday, China announced it had begun
investigating bitcoin exchanges in Beijing and Shanghai
on suspicion of market manipulation, money laundering,
unauthorized financing, and other issues. Selling in response to
that announcement pushed bitcoin down more than 13%.