Bitcoin Bounces Back After Crashing Nearly 60%

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Bitcoin staged an impressive comeback Wednesday, after crashing nearly 60 percent earlier to hit a low around $105, erasing more than half of its intraday losses.

The online currency steadied to trade near $175 at 6 a.m. London time. This was just the latest in a series of odd price movements for a currency that trades more like a commodity and is completely unregulated.

(Read More: Bitcoin Bubble: How 'Geeks' Sent Prices Parabolic)

Bitcoins surged in popularity following the Cyprus debt crisis, when depositors began to fear that a tax on depositors to cover losses from failing banks would be repeated in other European nations.

Critics worry that because Bitcoins are based solely within a computer network and has no governmental oversight, the currency is subject to hacking and users could get fleeced.

Even with Wednesday's volatile trading, Bitcoin's worth has grown tenfold over the course of the year.