Bitcoin jumped almost $2,000 from its intraday low Tuesday, making up some of the losses it sustained from 2018's January correction.
As of press time, bitcoin was trading around $7,900, after hitting a low of $5,947 a little over 12 hours ago. The world's largest cryptocurrency by market cap opened at just under $7,000 on the day but hit a daily high of $7,763, according to CoinDesk's Bitcoin Price Index (BPI). The coin first fell past that level Monday on its way to $6,000.
Overall, bitcoin has yet to make up a significant portion of the more than $10,000 it lost since reaching its all-time high of more than $19,000 in December, or even the $17,000 it fell from in mid-January. However, Bitcoin's increase reflects the overall cryptocurrency market cap, which jumped nearly $100 billion in 10 hours. In addition, each of the top 100 coins on CoinMarketCap was in the green Tuesday, after seeing declines for nearly a month.
The top three cryptocurrencies continued following each other, with ethereum's ether token rising to $781 and Ripple's XRP rising to $0.76. Ether first dropped below the $1,000 mark on Feb. 1.
Similarly, Bitcoin is now trading at roughly the same levels it was at in mid-November, when it first shot past $7,000.
Earlier Tuesday, Commodity Futures Trading Commission chair J. Christopher Giancarlo and Securities Enforcement Commission chair Jay Clayton testified that their agencies were keeping close eyes on the cryptosphere.
Both officials explained the efforts their agencies had made toward enforcing regulations to protect investors while watching the technology grow during testimony before the U.S. Senate Banking Committee.
The price of bitcoin yo-yoed wildly again on Tuesday, falling 14% to $5,920 (£4,250) before bouncing back to $7,265 – up nearly 6% on the previous day. The latest gyrations came as a leading central banker described the cryptocurrency as “a bubble, a Ponzi scheme and an environmental disaster”.
The new head of the Bank for International Settlements, Agustín Carstens, also said bitcoin threatened to undermine public trust in central banks and posed a threat to financial stability, and he signalled a global clampdown.
“If authorities do not act pre-emptively, cryptocurrencies could become more interconnected with the main financial system and become a threat to financial stability,” he said, speaking at Goethe University in Frankfurt, Germany.