China's financial services authorities required senior executives of the Shanghai-based bitcoin trading platform BTCC on Jan 6 to rectify misbehavior in the trading of the virtual currency.

The move was designed to raise awareness of risks, as the value of bitcoin has experienced wild fluctuations.

The value of each bitcoin jumped more than 14 percent on Jan 6, after hitting an all-time high of $1,180 (1,114 euros; 954) the previous day. The currency's value fluctuated by more than 30 percent within the past two weeks.

A statement by the People's Bank of China Shanghai head office on Jan 6 called the changes in the virtual currency "abnormal", and said authorities are requiring the trading platform to operate in compliance with established standards. They urged the platform to probe investors' behavior and to rectify misbehavior.

The statement said authorities would like to reaffirm that bitcoin is strictly a virtual currency that cannot be regarded as currency in circulation.

Investors flocked to the bitcoin market in recent days in a bid to gain from its fast appreciation. It rose 200 percent in 2016, while analysts warned that wild fluctuations of the virtual currency's price and lack of transparency of its flows may be risky.

According to data of Shanghai-based BTCC, a bitcoin trading platform, more than 100 new investors started trading the virtual currency in the past three days, a fast growth compared to some 20 new investors before October in 2016.

The bitcoin model limits the currency to a total of 21 million units, of which 16 million have already come into existence. The method to create new bitcoin involves complicated computer processes and has become increasingly difficult: On average no more than 7,000 new bitcoins are supplied to the market per year.

"This trend shows that the bitcoin market's appeal has been rising to a new level," a market review by BTCC said on Jan 4.

Feng Xin'an, a 43-year-old sales manager at Shanghai-based Maoxin Trade Ltd, says he invested 135,000 yuan ($19,515; 18,430 euros; 15,784) in the bitcoin market, as he regards bitcoin as a "haven asset".

"The young generation, like my son and his friends, love to pay with digital currency. Their demand for bitcoin will grow further, as I have observed," he says.

Analysts warned that bitcoin is not a tool that guarantees yield - and especially for new investors who have limited knowledge about the history of the virtual currency's prices and understanding of its nature, entering the market blindly could be risky.

"Investors should always remember that bitcoin lost more than 75 percent of its value in 2013. We do not recommend it as a long-term investment tool, particularly because of compliance concerns," says Zhang Yufang, an investment adviser at Shanghai Shangding Investment Consultancy.

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