Investing.com - The price of the digital currency bitcoin rose back to the $4,550 level on Wednesday, erasing almost all of the losses from Monday’s selloff which was triggered by China’s ruling that initial coin offerings are illegal.
On the U.S.-based Bitfinex exchange, Bitcoin touched a high of $4,550.00 and was at $4,497.10 by 09:08 AM ET (13:08 GMT) having opened at $4,375.00.
At current prices bitcoin has a market cap of about $74 billion.
Prices rebounded as bitcoin traders seemed to view Monday’s slump as a buying opportunity.
Cryptocurrency prices dropped after China banned all fundraising related to ICO’s, in what is the strongest regulatory challenge so far to the burgeoning market for digital token sales.
The popularity of coin offerings has surged in China this year. ICOs have become a bonanza for digital currency entrepreneurs, allowing them to raise large sums quickly by creating and selling digital "tokens" with little or no regulatory oversight.
The price of the new bitcoin offshoot, Bitcoin Cash was also higher. It touched a high of $629.93 and was last at $599.07, having opened at $545.00.
At current prices, bitcoin cash has a total market capitalization of around $9.9 billion, making it the third most valuable cryptocurrency.
Elsewhere in cryptocurrency trading, Ethereum, the second biggest cryptocurrency by market cap after bitcoin, was up 1.89% to $322.01.
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