has risen around 2 percent in the past day, pushing towards its all-time high on renewed hope that U.S. regulators could approve a key trading product for the cryptocurrency.
The price of Bitcoin against the dollar stood at around $1281.17 during mid-morning trade in London, according to CoinDesk data, up from $1251.46 a day ago.
Optimism in the market has come from an announcement in the U.S. that the Securities and Exchange Commission (SEC) is reviewing its decision to reject a bitcoin exchange-traded fund (ETF) proposed by Cameron and Tyler Winklevoss.
Last month, the SEC denied an application by the Winklevoss twins to list the ETF, which would have made it the first product of its kind in the U.S. for bitcoin. The proposal involves listing the ETF on the Bats BZX exchange, one of the largest U.S. equities market operator.
Bats filed a notice of petition to review the SEC decision which has now been accepted. It means the SEC will look into its initial decision to reject the ETF.
"The Commission hereby establishes that any party to the action or other person may file a written statement in support of or in opposition to the Disapproval Order on or before May 15, 2017," the SEC said in a statement posted on its website on Tuesday.
Traders are hoping that this at least opens the doors to the ETF getting a second shot at being approved.
"The news of the review has definitely excited speculators, although it's unclear if this will alter the SEC's decision. So the gains in the last 24 hours may be temporary," Thomas Glucksmann, head of marketing at regulated cryptocurrency trading platform Gatecoin, told CNBC via email.
In the last 24 hours from the time of publication, nearly two-thirds of trades were to buy bitcoin while the rest were to sell, showing the current bullishness around the asset.
Bitcoin has been on a steady rise for the past month, up around 23 percent. It is also closing in on its all-time high of $1,325.81 hit in March. The price movement has been supported by a number of factors including Japan beginning to accept bitcoin as legal currency as well as the Russian government making comments about looking to recognize cryptocurrencies as legal financial instruments in 2018.
But bitcoin has also had its recent problems. There is a debate among the community over the future of the underlying technology and how that plays out in the future. For a full rundown of this issue, click here. There were also problems this month with customers on some bitcoin exchanges struggling to withdraw fiat currency from their accounts.