Bitcoin rises modestly after recent slump

The price for Bitcoin was moderately higher early Monday, as the world’s No. 1 cryptocurrency stabilized somewhat after a punishing past week.

A single Bitcoin

BTCUSD, +2.71%

was recently changing hands at $9,541.65, up from $8,981.03 late Friday in New York.

Bitcoin dropped about 20% last week, with analysts blaming the selloff in part on regulatory worries, such as a Wednesday warning on crypto-trading platforms from the Securities and Exchange Commission.

The People’s Bank of China also sounded downbeat on digital currencies last week. Zhou Xiaochuan — the central bank’s governor — said Friday that Beijing does not recognize Bitcoin and other virtual currencies as legitimate forms of payment, according to a Reuters report.

“Cryptocurrencies are still in the early stages of development,” said Matthew Newton, an analyst at eToro, which offers a crypto-trading platform, in a recent note. “As the market grows, regulatory scrutiny is to be expected. Appropriate regulation should ultimately help promote best practice and afford protection to the consumer.”

On Monday, futures markets tracked spot prices higher. The Cboe Global Markets March contract

XBTH8, +7.83%

was recently up 5% to $9,600, while the CME Group Inc. March contract

BTCH8, +9.32%

gained 6% to $9,585.

Article Source…