Investing.com - Bitcoin prices rallied above the $700-level on Tuesday, as prices of the virtual currency continued to rebound from a recent slump sparked by the bankruptcy of Tokyo-based Bitcoin exchange Mt. Gox.
BTC/USD rose to a session high of $710.00 on Slovenia-based BitStamp, before trimming gains to last trade at $683.00 during U.S. morning hours, up 2.1%, or $14.00.
The price of a Bitcoin on Bulgaria-based BTC-e rallied 4.65%, or $30.00, to trade at $675.00.
According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency jumped 2.8% to trade at $679.10.
Bitcoin prices have been on a tear since the unexpected collapse of Mt. Gox, once the world's biggest Bitcoin exchange.
The struggling exchange filed for bankruptcy protection in Japan on February 28, saying it may have lost nearly $500 million worth of the virtual currency after hackers gained access to its systems.
Prices of the crypto currency are up nearly 41% on Bitstamp since hitting a low of $400.00 on February 25, while prices on BTC-e have gained nearly 36% since hitting a low of $430.10 also on February 25.
Bitcoin is digital cash for the internet and it is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.