Bitcoin climbs back above $42,000 after brutal cryptocurrency market selloff

The world’s top digital asset, bitcoin, is clawing back some the losses it sustained during the previous session, amid a massive cryptocurrency market selloff.

Bitcoin rose above $42,000 per token, marking an 25% day-over-day growth as of 13:15 GMT, according the data tracked by CoinMarketCap. Its market value is currently around $750 billion.

Some of bitcoin’s rivals also moved to recovery on Thursday, with ether up 35% to just under $3,000, and dogecoin gaining more than 37% to $0.43.

Wednesday’s brutal selloff followed the announcement by Chinese regulators of plans to ban financial institutions and payment firms from providing services related to cryptocurrencies.

The news sent the crypto market crashing as much as 30%, with bitcoin trading as low as $30,000 before paring some losses later in the day.

The Chinese regulatory clampdown intensified the pressure that had been put on the crypto market by recent comments made by Tesla boss Elon Musk.

Last week, Musk announced Tesla had suspended vehicle purchases with cryptocurrencies, due to environmental concerns. This led to speculation that the automaker may have sold its $1.5 billion in bitcoin holdings, something Musk later denied.

On Wednesday, the billionaire entrepreneur took to Twitter again to post the “diamond hands” emoji, possibly implying that his company would not part with any of its bitcoin.

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