The price of bitcoin jumped 13 per cent to nearly $16,000 on Tuesday, recovering from a sharp sell-off last week that saw the cryptocurrency’s value plummet by nearly a third amid growing concerns among regulators about a potential bubble.

The price of the cryptocurrency remains below its mid-December peak of nearly $19,666, but its rapid ascent since the start of the year when it was worth just $1,000 has alarmed regulators and financiers who fear the market shows all the signs of overheating. At the time of writing one bitcoin was worth $15,707, according to Coindesk.com. On Tuesday the currency was up 43 per cent from Friday’s low.

Concerns about the spiralling price of bitcoin and huge volatility in the value of the currency have prompted regulators around the world to take action in recent months amid fears a collapse in its price could leave investors nursing heavy losses.