Experts said the rise in bitcoin on Tuesday was due to choppy Chinese stock markets which were trading lower for most of the day before closing in mildly positive territory. The Chinese yuan has also fallen against the U.S. dollar this year which has given a boost to bitcoin, according to Bobby Lee, chief executive of BTC China, one of the largest bitcoin exchanges in the world.
"People are waking up to the fact that bitcoin is money in the cloud, so when you exchange from local currency like the Chinese yuan or U.S. dollar, you are exchanging this physical money to money in the cloud. What's good about money in the cloud, is it has been stable, the volatility has been down, it's a good store of value," Lee told CNBC by phone