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The price of Bitcoin has rallied after the European Central Bank (ECB) ruled out a ban on cryptocurrencies.

The value of the notoriously volatile digital currency increased and stabilised on Wednesday morning, touching $8,900 (£6,417) according to CoinDesk - a rise of $370.

The beleaguered Bitcoin could return to $10,000 (£7,209) by the weekend if confidence continues to rise.

The boost came after the ECB's president Mario Draghi resisted calls on Tuesday to block cryptocurrencies such as Bitcoin, whose value dramatically plunged in January.

Calls have mounted for banks to bar the volatile tokens but the ECB's president Mario Draghi said in a video response that regulating them was not one of the bank's tasks.

“Many of you posted questions about whether the ECB is going to ban Bitcoins or it’s going to regulate Bitcoins,” Mr Draghi said. “I have to say it’s not the ECB’s responsibility to do that.”

Bitcoin hit a record high in mid-December as prices soared to $19,850 (£14,310) but tumbled in the first month of 2018.

It finally plummeted to $6,000 (£4,325) a few days ago as a series of high-profile thefts as well as fears of regulation demolished its gains.

South Korea recently barred people from trading bitcoin and other cryptocurrencies anonymously, but said it is not planning to ban digital currency exchanges.

Meanwhile, Theresa May hinted that the UK government may introduce similar measures, while the US government has fretted over the cryptocurrency's popularity with criminals.