Bitcoin soars $40K as crypto volatility lingers

LONDON: Bitcoin climbed back above $40,000 on Wednesday for the first time this week, as recent volatility in the cryptocurrency market showed few signs of dampening down.

Bitcoin jumped as much as 6.5 per cent to $40,904. Smaller coins, which tend to rise and fall with the largest cryptocurrency, also gained, with ether climbing over 7.5 per cent to over $2,906, Reuters reported.

Still, bitcoin is down 30 per cent this month, and has lost over 37 per cent from its record high of almost $65,000 hit in April. It has gained over 40 per cent this year, however.

Among the drivers of bitcoin's recent slump have been fears of a crackdown in China on the emerging sector, as well as concerns over the environmental impact of bitcoin production, an energy-intensive process known as mining. Bitcoin plumbed $30,066 last week, its lowest since January, in highly volatile trading.