On Tuesday, a leading bitcoin exchange saw the value of the online currency briefly soar to a new high.
European bitcoin trading volume on the Mt. Gox exchange was more than twice that seen on Monday. Bitcoins rose sharply early in the session, surpassing $900, but then fell back sharply, MarketWatch notes.
Prices for bitcoin were volatile during session, moving between a low of $502.62 and $900.98. Bitcoin prices climbed after government officials expressed positive views of bitcoins during a Monday hearing before a U.S. Senate committee.
On Monday afternoon, bitcoin hit $750 on the Mt. Gox exchange. That represented a 42% jump over the bitcoin Sunday close, CNBC noted.
Bitcoins have seen their value on the Mt. Gox exchange jump more than 100% in a week.
Bitcoin traders expressed optimism after yesterday’s hearing. Last month, regulators shut down the Silk Road bitcoin exchange, accusing it of permitting bitcoins to transfer billions of dollars in illegal transactions.
In a statement to the Senate Committee, the Federal Reserve said that it does monitor bitcoin trading, but “does not necessarily have the authority to directly regulate” bitcoins.
Earlier this year, bitcoin trading attracted media attention after Cameron and Tyler Windlevoss — who claimed that Mark Zuckerberg swiped the concept for Facebook (FB) from them — filed documents with the SEC to form an exchange-traded bitcoin fund: the Winklevoss Bitcoin Trust.