Bitcoin bounces back to $40,000 after cryptocurrency market's wild ride

The world’s leading cryptocurrency, bitcoin, has rebounded to over $40,000 on Wednesday, a week after its price plummeted to around $30,000.

The digital currency was trading up more than 6% at $40,380 per coin as of 10:00 GMT. Most other major cryptocurrencies were also trading higher, with ether surging almost 12% to $2,867 and dogecoin climbing over 3% to 36 cents a coin.

The recovery comes despite China tightening regulation on crypto mining and trading and the US Treasury Department’s announcement that it would require stricter crypto compliance with the Internal Revenue Service (IRS).

Tesla CEO Elon Musk, who has relentlessly been muddling the cryptocurrency market with his controversial announcements, said on Monday that he spoke to bitcoin miners in North America about renewable energy solutions. Another billionaire, Ray Dalio, said this week that he prefers bitcoin to bonds and that he owns some bitcoin.

Traders expect a broader rally to come and a bullish market sentiment if bitcoin continues to rise above $42,000 and ether reclaims $3,000.

For more stories on economy & finance visit RT's business section