The exact point of departure for another aggressive price surge in Bitcoin is difficult to place, but there are a number of reasons that may have encouraged renewed buying interest. Reports earlier in October, suggested that Goldman Sachs might be considering opening a Bitcoin trading desk and this was seen as a leading institution being receptive towards the potential of crypto currencies. Given that investment banks are traditionally conservative, especially in the wake of the 2008 credit crunch, their interest is counteracting the dismissive comments. There have even been reports in the last 24 hours, that China might be considering reversing its ban on Bitcoin exchanges, something that if confirmed, would represent a remarkable turnaround, considering China’s ban on Bitcoin exchanges was seen as the sole catalyst for the decline to $3000 not so long ago.

The emergence of Bitcoin this year has been absolutely spectacular and the truth is, many are still unsure what the crypto currency really is. That includes myself, who is now needing to monitor the ongoing fluctuation in the value of Bitcoin because of how much attention it is gaining across both investors, and the financial headlines. However, I can understand why Bitcoin attracts criticism. It is not a conventional asset, and the ongoing volatility (it is not unusual for the price of Bitcoin to swing by 5+/- % in a matter of minutes) means that anybody who wants to invest in Bitcoin needs to be aware of the possible risks. This is a volatile instrument and due to traders not always understanding the risks around investments, it is only fair that commentators point out that Bitcoin is not regulated. Most regulators and senior officials have actually been caught off guard by the revolution of crypto currencies, because few believed that they would gain enough traction to warrant a regulatory framework.