The price of bitcoin grew sharply on the morning of Boxing Day as the cryptocurrency bulls reasserted themselves after a week of selling.
According to the Coindesk price index, the price of a bitcoin increased by over 15 percent from midnight on Christmas day to the in order to burst back through $16,000 in the late afternoon trading.
Traders in bitcoin have already experienced a highly volatile Christmas period, with cryptocurrency markets proceeding to trade at all hours when some other markets have been winding down for the holidays.
Over the previous month alone, the value of the bitcoin has started under $10,000, increased to just shy of $20,000, dropped to below $12,000, and recovered to be above $16,000, as the cryptocurrency has begun to gain mainstream momentum.
The dollar value of Bitcoin has increased by about 15 times over the previous year, as investors from across the globe have piled into to the cryptocurrency in what some economists have dubbed as an investment mania that signals a bubble.
Bulls for the cryptocurrency that is based on a decentralised blockchain transaction ledger, argue that bitcoin will form the foundation of a new form of money that is independent from the traditional power structures such as central banks and governments, even though the wild swings in value at the present make it all but useless for daily transactions.
The lack of control, along with a huge volatility, have made some regulators in traditional financial markets concerned. According to Reuters, yesterday, the Israel Securities Authority (ISA) said that it would ban bitcoin-related companies from its stock exchanges.
At a conference that was held yesterday, Shmuel Hauser, the ISA chairman, stated: “We feel that the prices of bitcoin behave like bubbles and we don’t want investors to be subject to that volatility and uncertainty.”