Bitcoin claws back to $40,000 after crypto market meltdown

Crypto markets are showing signs of recovery after Wednesday’s dramatic selloff.

Bitcoin hovered near the $40,000 mark and Ether rebounded in early U.S. trading as investors tried to make sense of the crash that wiped away billions and shattered the notion of crypto as a maturing asset class.

“You can’t keep a good dip buyer down for long in the financial markets these days, and cryptos are no different,” said Jeffrey Halley, a senior market analyst at Oanda. “The mass liquidation yesterday will have thinned out the ranks of believers.”

Volatility has dominated crypto markets, with Bitcoin plunging and surging more than 30% within a few hours on Wednesday. The carnage kicked off last week, when Tesla Inc.