Bitcoin price is holding on to gains, hovering around $10,000

Bitcoin was holding on to gains this morning, hovering around $9,800 a day after it reached $10,000 for the first time following a spectacular crash in which it lost 70 per cent of value in a matter of weeks.

The cryptocurrency rose to $10,000 yesterday, for the first time since the end of January, having peaked at $20,000 in mid-December, but fallen to $6,000 at the beginning of this month.

This morning it had edged 1.2 per cent lower, to $9,864, but was holding on to most of its gains.

The rise followed the beginnings of a recovery on equities markets: this morning the FTSE 100 was up 0.7 per cent, at 7,282.6 points, having fallen as low as 7,092.4 points a week ago.

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“It’s not just equity traders who’ve rediscovered their appetite for risk, cryptocurrencies are also back on the menu,” said Lee Wild, head of equity strategy at Interactive Investor.

“Bitcoin’s spectacular crash from near-$20,000 to just $6,000 in less than two months is seen as a great time to pick up cheap coins.

“Regulatory interference is finally being accepted as a sign of maturity and a positive development for this new asset class, rather than a threat. A move overnight back above $10,000 for the first time in two weeks was brief. Seems even crypto investors are happy with a 70 per cent rally in 10 days.”

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