Bitcoin has crossed the $40,000 (£28,258) milestone, as cryptocurrencies continue to recover from the weekend sell-off. However, it is still well behind its all-time high of $63,000 set earlier this year.
On Wednesday morning, Bitcoin was up 4.2 percent to $40,500. Ethereum, the second-largest cryptocurrency by market capitalization, was up 9.4% to $2,896. Dogecoin increased by 1.1 percent to $0.36.
“Bitcoin prices are continuing to recover from their recent slump,” said Naeem Aslam, Ava Trade’s chief market analyst.
“The truth is that bitcoin was overdue for a correction, and it appears that the sell-off is now done.”
He stated, ” “When the sell-off began, the single greatest risk was that some of the positive sentiment among institutional traders would begin to wane. That was not the case; in fact, many institutions saw the sell-off as an opportunity and began snagging some bargains.”