Bitcoin and other cryptocurrencies have rebounded after a brutal sell-off, with the world's largest digital currency climbing above $31,000.
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Bitcoin’s price rose 6.2% in the past 24 hours, to $31,676 as of 10:40 a.m. ET, according to data from Coin Metrics. Smaller cryptocurrencies ether and XRP also rebounded, up 9% and 6%, respectively.
On Tuesday, Bitcoin fell below the $30,000 mark for the first time since June 22.
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The reason for this increase was not clear. Cryptocurrencies often experience significant price swings. Bitcoin, for example, reached an all-time high in April (nearly $65,000).
Vijay Ayyar, head of Asia-Pacific at cryptocurrency exchange Luno, said Wednesday's price move was likely a "dead cat bounce," where an asset briefly recovers from a prolonged decline before continuing to decline.
Cryptocurrencies are on a downward spiral amid a growing crackdown on the industry by regulators around the world.
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In China, authorities have sought to crack down on cryptomining, the process that validates transactions and produces new coins. Binance, the world's largest crypto exchange, is facing increasing pressure from regulators in the United Kingdom , Italy and other countries .
Information source: cnbc.com
