The turnaround comes after Bitcoin on Tuesday fell below $30,000 for the first time in a month, wiping $40 billion off the cryptocurrency market. Some investors view $30,000 as a key threshold for the digital coin.
While Wednesday’s recovery will surely please crypto fans, Bitcoin is still worth less than half of its all-time high of nearly $65,000 in April.
In China, the government has sought to stamp out crypto operators across the country, raiding bitcoin mines and arresting more than 1,000 people for allegedly using crypto to launder profits from frauds in June.
The digital coin’s decline has come as regulators around the world take a harder line toward crypto.
As of 1 p.m. on Wednesday, Bitcoin was trading at $32,064 — an 8.3 percent increase over the past 24 hours, according to CoinDesk’s Bitcoin price index.
Other cryptocurrencies also rallied on Wednesday, with Ethereum up 10.1 percent to $1,961, XRP up 7.3 percent to 57 cents and Dogecoin up 16.0 percent to 20 cents over the past 24 hours, according to CoinDesk.
Some investors view $30,000 as a key threshold for the digital coin.Getty Images
In the US, meanwhile, Federal Reserve Chairman Jerome Powell has said cryptocurrencies pose risk for individual investors and the broader financial system — and the Treasury Department has begun requiring crypto transfers worth $10,000 or more to be reported to the Internal Revenue Service.
Some crypto proponents view government involvement in the digital currency space as a sign of growing legitimacy, while skeptics say regulation could kill enthusiasm for the assets. Additional reporting by Will Feuer