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There’s a subdued atmosphere in the City of London this morning as traders struggle through the drizzle back to their desks following the Christmas break.
But bitcoin is defying the quiet mood, and staging a strong recovery after its sharp plunge last week which saw it fall from around $19,000 to just $14,000 in two days .
The price of bitcoin surged by 13% on Tuesday, and it’s extending those gains again this morning – currently changing hands at around $16,200.
That should relieve those who jumped into the cryptocurrency arena in recent weeks, but may also spur concerns that the bitcoin bubble is still inflating.
The rally comes despite another crackdown against bitcoin, this time from Israel.
On Monday, Israel’s stock market regulator revealed plans to ban companies based on digital currencies from trading on the Tel Aviv Stock Exchange.
Shmuel Hauser, the chairman of the Israel Securities Authority, declared that the public need to be protected from potentially unscrupulous bitcoin operations:
Hauser, who clearly isn’t a fan of bitcoin, added:
This tough stance may embolden other regulators to take a closer look at bitcoin, which could mean further volatility in the weeks ahead.
Apart from bitcoin, City traders will also be watching out for new UK home loan data this morning, and US consumer confidence stats this afternoon (unless they slope off early to finish off the mince pies).
9:30am GMT: UK mortgage approvals data for November
3pm GMT: US Consumer Confidence index for December