Bitcoin remained above the key $500-level on Monday, as prices of the virtual currency stabilized following sharp losses suffered earlier in the month.

Bitcoin (BTC/USD) shed 0.69%, or $3.51, on Slovenia-based BitStamp to trade at $504.91 during U.S. morning hours. Prices held in a narrow range between $496.00 and $515.95.

Elsewhere, the price of a Bitcoin on Bulgaria-based BTC-e dipped 0.67%, or $3.36, to trade at $501.29.

According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency declined 0.91% to trade at $503.94.

Meanwhile, euro-denominated Bitcoin prices (BTC/EUR) slumped 0.41%, or €1.58, to trade at €388.15 on U.S.-based Kraken Exchange.

Bitcoin prices tumbled sharply earlier in the month, with analysts blaming various events for this trend, including a recent U.S. government report that highlights the risks associated with virtual currencies, New York's BitLicense proposals, and the introduction of new sophisticated trading techniques.

A number of traders and market analysts also attributed the recent decline to price manipulation by short-term profiteers who are deliberately driving prices down to eventually buy them back at lows.

Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.

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