After a rocky few days in the wake of South Korean governmental officials warning of tighter regulations, the value of Bitcoin has rebounded above $11,200. It is thought many investors bought into the relatively low valuation as price rises were expected.

Despite bouncing back with a large rise in valuation over the course of 24 hours, the digital currency is still around 19% down overall since the turn of the year. The fear of tighter controls and government interference in South Korea (where there are huge numbers of investors), and from other parts of the world, has spooked the cryptocurrency market.

It isn’t only the thought of making a quick buck from a volatile market place that has interested new investment in recent days. It is also thought that the Lunar New Year is playing a part in larger investments in Asia, with digital currency being traded for cash as gifts to friends and family as New Year\'s offerings.

A number of cryptocurrencies fought back after disappointing recent performances, with Ripple seeing a net 14% rise on Wednesday and Ethereum also rising above the $1,000 level. In such a volatile market, what will happen next in terms of the valuation of multiple digital currencies?