Bitcoin rallies after G20 nations chose not to launch clampdown on cryptocurrency

Bitcoin’s rally stepped up today after three powerful G20 nations chose not to launch a co-ordinated clampdown on the cryptocurrency market.

The largest digital currency, which hit an all-time high of almost $20,000 (£14,265) in December, broke through the $9000 barrier, stepping up more than $200 on the day.

Bitcoin had dropped to a low of $8000 on Monday.

Traders had been concerned about a clampdown after ministers said they would discuss a common approach to cryptocurrencies at their meeting in Buenos Aires this week.

The G20, which includes the UK, US and Germany, said digital coins were assets that “at some point”, “could have financial stability implications” and set a July deadline to decide what steps to take.

Bank of England Governor Mark Carney was credited with persuading the G20 to back off.

He wrote in a letter to G20 finance ministers and central bank governors that cryptoassets “do not pose risks” to the world’s economy as they are relatively small.