Bitcoin bounces back after China speculation sparks losses

BITCOIN'S price has clawed back some of its losses after sinking in response to speculation China was to close down local cryptocurrency exchanges.

The digital currency is now sitting at around $4,317 - rising by around three per cent on Tuesday.

Bitcoin's price yesterday hit lows of around $4,100, losing around $800 since the start of the month when the price came within touching distance of $5,000.

Speculation is rife the Chinese government is launching a crackdown on exchanges, prompting traders to sell off the cryptocurrency.

The world's second largest economy previously decided to ban initial coin offerings, which are used to raise funds with new digital tokens.

The moves signal a marked hostility towards bitcoin and cryptocurrency in China.