Bitcoin soars above $5100 mark following good news from China

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In September, banking regulators in Beijing and Shanghai ordered local cryptocurrency exchanges to shut down. But what is slightly less intuitive is that those supporting Bitcoin2X have to buy the currency as well. President Vladimir Putin said this week that Russian Federation should regulate bitcoin trading in order to combat money laundering and the funding of terrorism, but, while this was widely reported as an anti-bitcoin move, he also said there should be no "excessive barriers" to the use of cryptocurrencies. For the week, bitcoin is up over 30 percent.

The bitcoin supply is capped at 21 million units, some 17 million of which have already been mined.

Mike Novogratz, Galaxy Investment Partners, recently told CNBC that bitcoin can hit the $10,000 mark soon, but with a warning.

Last month China appeared to be waging an all-out war on bitcoin after it banned companies from engaging in initial coin offerings that are increasingly being used to fund new cryptocurrency start-ups.

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Unlike a real-world unit such as the U.S. dollar or euro, bitcoin has no central bank and is not backed by any government.

Another key player in the crypto currency is Russian Federation, where President Vladimir Putin on Wednesday spoke of a "risk" that virtual currencies - often associated with so-called anonymous "dark web" dealings - could represent. The rise to dominance of the Japanese markets has largely displaced fears that China's cryptocurrency crackdown signified the end of bitcoin's bullish trajectory heading into the end of 2017.

The rising use of blockchain - a theoretically unhackable digital ledger technology - is also viewed as keeping the digital cash's value buoyant, according to Revenu. Some of the key stakeholders of the financial industry have also shown support and trust in Bitcoin.

The sudden resurgence is linked to China's clamp down on the cryptocurrency being less severe than initially thought, with the country likely to open trading of it once again.