Bitcoin Hits Fresh Record Highs on Rumors of Chinese Ban Reversal

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It started the year at "just" $966 and quickly spiked to more than $3,000 by June.

Bitcoin tumbled below $4 000 last month after China's central bank stepped up regulations on digital currencies, banning initial coin offerings, a popular means of fundraising for startups.

It's the first time the cryptocurrency has confidently shot past $5,000.

Today, however, the bitcoin price continued to swell after piercing the psychologically-important $5,000 barrier and setting a new all-time high.

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"Bitcoin was created to operate outside of the influence of governments and central banks, and is doing exactly that", said Iqbal Gandham, Managing Director at retail trading app eToro, which has seen huge increases in cryptocurrency trading volumes.

Professor of economics and public policy at Harvard University, Kenneth Rogoff, expects the price of Bitcoin to collapse.

Bitcoin was trading up 8 per cent on the day around $5200 on Luxembourg-based exchange Bitstamp.

Bitcoin continued higher on Wednesday, approaching its best levels since early September as investors disregarded Russia's attempt to curb cryptocurrency exchanges. The bitcoin price has continued to climb on every major cryptocurrency exchange, and it has now risen to a record $5,419 on Bitfinex.

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