Investing.com - After briefly rising to a one-month high of $11,250 overnight the price of digital currency bitcoin turned lower on Sunday.
Bitcoin was trading at $10,216 on the Bitfinex exchange, down around 5% for the day after hitting a high of $11,250 overnight, the strongest level since January 30.
Bitcoin has rebounded after falling to a more than two month low of $6,000 on February 6, but the price remains more than 25% lower for the year to date.
Cryptocurrency prices fell sharply at the start of the year as governments clamped down on trading and major banks implemented a ban on using credit cards to buy digital currencies.
Prices were also been hit by fears over potential price manipulation. U.S. regulators are investigating the Bitfinex exchange over its links to digital asset Tether, amid fears that it is being used to artificially inflate bitcoin prices.
But market sentiment recovered after South Korea indicated last week that it will allow cryptocurrencies to continue operating in the country, welcome news for investors who had feared an outright ban.
Recent comments from U.S. financial regulators that balanced the need for regulation with consumer protection have also helped prices recover.
Other major cryptocurrencies also traded lower, with Ethereum, the world’s second largest cryptocurrency by market cap, losing around 5% to trade at $913.49.
The third largest cryptocurrency Ripple was down about 6% to $1.06.