The wider Bloomberg Galaxy Crypto Index, which tracks some of the major cryptocurrencies, also advanced, adding as much as 7.7% at one point.
With Bitcoin crossing the $40,000 threshold, many chartists are looking at $42,500 as its next important level to breach.
“Bitcoin is always going to be volatile and the manic run-up we had was never sustainable.
The recent selloff has been exacerbated by a public rebuke from Tesla Inc.’s Elon Musk, who criticized the amount of energy used by the servers underpinning the token and reneged a previous offer to allow customers to buy his cars using the cryptocurrency.
“I like Bitcoin as a portfolio diversifier,” Tudor Jones of Tudor Investment Corp.
Meanwhile, over the weekend, Musk once again roiled the market, saying via tweet that Tesla would allow transactions in Bitcoin once it is mined with more clean energy.