Cryptocurrencies bounced back on Monday night and continued the momentum on Tuesday, regaining lost ground after last week's nosedive, in which billions of dollars were wiped off the market.
At 1:30 am on Tuesday, Bitcoin was up 19 percent at $39,801 after plummeting to less than $32,000 on Sunday. At the same time, Ether, a rival coin, was trading 34 percent higher at $2,668.
As per a CoinDesk report, Monday's quick rebound came after the demand from wealthy investors brought relief to the market.
Adding support to the price rise on Monday was Ray Dalio, the founder of Bridgewater Associates. Speaking on the first day of CoinDesk's Consensus 2021 conference, Dalio said he prefers Bitcoin over bonds.
He said, should cryptocurrencies continue to gain traction, investors might decide to invest in them rather than government bonds. Dalio has been bearish on bonds for some time now, claiming that the "economics of investing in bonds has become stupid" as they pay less than inflation. He also revealed that he owns "some Bitcoin", though he did not reveal the amount.
Further, the coin's jump in green was boosted by Tesla chief Elon Musk tweeting about meeting with North American bitcoin miners about sustainability initiatives.
"Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising," Musk said on Twitter.
Elsewhere, Dogecoin also showed signs of a rebound, with its price rising from 24 cents on Sunday to 33 cents on Tuesday -- nearly 38 percent.
Broadly, the crypto market traded in the green on Monday, with the sentiment positive on Tuesday as well.
Bitcoin slumped over 8 percent on Sunday after the miners in China halted operations in the face of increasing scrutiny from the authorities.
In the past week, authorities and policymakers stepped up their response to the popularity, and volatility, of cryptocurrencies, with ECB Vice-President saying that crypto assets aren't a real investment.
(Edited by : Abhishek Jha)