Bitcoin rallies to bounce back above $40,000

Bitcoin extended gains to bounce back above the $40,000 level as cryptocurrencies recover some of the ground lost in this month’s volatile rout. The world’s largest cryptocurrency by market cap surged as much as 7.6% to $40,501.

Other cryptocurrencies including ether also gained. ETH climbed around 10% to trade near the $3,000 mark. Virtual currencies have swung wildly in recent days after billionaire Elon Musk criticized Bitcoin’s energy consumption and said Tesla Inc. was suspending payments using the token. Tough regulatory rhetoric on cryptocurrencies from China exacerbated the selloff, which saw leveraged investors unwind positions.

Bitcoin last week had plunged below the $40,000 level, its lowest since February.