Investing.com - The price of the digital currency bitcoin was higher on Thursday, building on the previous day’s gains as investors continued to shake off concerns over a clampdown on virtual currencies in China.
On the U.S.-based Bitfinex exchange, Bitcoin was trading at $4,261.8 by 05:56 AM ET (09:56 GMT), up 1.24%, having opened at $4,207.5.
Prices rose 8.4% on Wednesday after European Central Bank President Mario Draghi said the bank does not have the authority to regulate cryptocurrencies.
Draghi said that "it would actually not be in our powers to prohibit and regulate" bitcoin and other digital currencies.
He also said that the ECB has yet to discuss the potential impact of cryptocurrencies, adding that they are still too immature to be considered a viable method of payment.
Prices received an additional boost after Morgan Stanley CEO James Gorman said bitcoin is "more than just a fad."
The remarks were in contrast to comments by JPMorgan CEO Jamie Dimon, who said earlier this month that he believes bitcoin is a "fraud."
Bitcoin prices have recovered after slumping mid-month when Chinese authorities announced a ban on trading cryptocurrencies in China.
China used to account for the majority of bitcoin’s overall trading volume, but now makes up less than 15% of the total amount.
Despite the recent pullback, the digital currency is still enjoying a remarkable year, with prices up almost 350% since the start of the year, beating just about every other asset class.
At current prices, bitcoin has a total market capitalization of around $70 billion.
Elsewhere, the price of bitcoin offshoot Bitcoin Cash was a touch lower. It was last at $462.67, having opened at $477.90.
Bitcoin cash has a total market cap of around $7 billion at current prices, making it the fourth most valuable cryptocurrency.
Elsewhere in cryptocurrency trading, Ethereum, the second biggest cryptocurrency by market cap after bitcoin, slipped 1.03% to $306.80.