Is bitcoin the new honey badger?
In spite of being hit on all sides by bad news, the embattled virtual currency rallied sharply on Monday by nearly 20 percent, as questions swirled around the demise of the world's largest bitcoin exchange.
As regulators and prosecutors encircled Mt.Gox, the bitcoin trader that sought bankruptcy protection last week with nearly $500 million of virtual currency vanishing into the ether, bitcoin extended its rally.
(Read more: How to make money from bitcoin)
The cryptocurrency plunged immediately after the disclosure of Mt.Gox's troubles, but began a quiet surge late last week as the world's attention shifted elsewhere. Some analysts think the worst news may already be discounted in bitcoin's price, and that investors could be separating bitcoin and the defunct exchange.