Bitcoin price surges back up after dramatic plunge

Digital money had lost a third of its value in just a couple of weeks

Crytocurrencies: The snake oil of the financial world? (Reuters)

Bitcoin's price has surged back up after a run of terrible performance.

The value of cryptocurrency has crashed dramatically in recent weeks that some feared the market was crashing altogether.

But the price has now surged by almost 10 per cent, putting it on course for its best day since the summer.

Even in the midst of that dramatic crash – during which some bitcoin mines went closed and companies went bankrupt because the value dropped so low – some experts suggested the performance was simply a blip rather than a more fundamental change in cryptocurrency's value.

The plunge meant that bitcoin lost a third of its value in two weeks, with no clear reason.

It has no risen back to daily high of $4,157, its strongest in four days on the Bitstamp exchange. Other cryptocurrencies also rose.