Bitcoin price soars to record high as Harry Redknapp joins digital coin craze

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The price of bitcoin surged to a record high today with one unit of the volatile cryptocurrency worth more than $5,800 (£4,350). The record comes as football manager Harry Redknapp gave his backing to an otherwise unknown British digital currency.

The new high on Friday morning means the price of bitcoin has increased more than fivefold since the start of the year, when the digital currency was worth around $1,000.

The currency has rebounded in trading on online exchanges in the past month, almost doubling after it fell below $3,000 on September 15.

Bitcoin and crytocurrencies have come under increased regulatory scrutiny in the past month, with China banning initial coin offerings, online sales where businesses sell unregulated digital currency to raise funds, generating highly inflated valuations.

But bitcoin has rebounded from the ban with its latest $5,800 peak. The digital currency has created many millionaires, but sceptics have called cryptocurrency a bubble, with JP Morgan boss Jamie Dimon labelling the trading “stupid” and “a fraud”.