Bitcoin surged back above $ 40,000 for the first time this week on Wednesday, while recent volatility in the cryptocurrency market showed little sign of decreasing.
Bitcoin rose a whopping 6.5% to $ 40,904. Smaller coins, which tended to rise and fall with the largest cryptocurrency, also rose, with the ether rising more than 7.5% to over $ 2,906. Still, Bitcoin is down 30% this month and lost over 37% from its record high of nearly $ 65,000 in April. However, this year it has increased by over 40%.
Drivers of Bitcoin’s recent slump have included fears that the emerging sector in China will be crushed, as well as concerns about the environmental impact of Bitcoin production, an energy-intensive process known as mining.
Bitcoin lost $ 30,066 last week, its lowest level since January, in highly volatile trading.
China’s northern region of Inner Mongolia escalated a campaign against mining and trading of cryptocurrencies on Tuesday and released draft rules to root out the business days after Beijing promised to crack down on bitcoin mining and trading.