Bitcoin rose above $39,000 on Sunday evening, the highest level since mid-June, as investors reacted positively to a recent sell-off.
According to CoinDesk data, the cryptocurrency was trading at around $38,059.84 at 11:05 p.m. ET, up nearly 11% from the same time the day before. Bitcoin earlier reached a 24-hour high of $39,544.29, the highest since June 16.
Other cryptocurrencies have benefited from Bitcoin's gain, with ether rising 5.9% to $2,299.55. As of 11:05 p.m. ET, the entire cryptocurrency market had gained over $114 billion in value in just 24 hours, according to data from Coinmarketcap.com.
The rebound comes after bitcoin recently dipped below $30,000 due to a global stock market sell-off, raising concerns that it could fall further lower.
"I believe we saw an accumulation period around 29-30K, signaling bullishness and a probable climb towards $40K for Bitcoin," said Luno's head of business development, Vijay Ayyar.
Twitter CEO Jack Dorsey, Tesla CEO Elon Musk, and ARK Invest CEO Cathie Wood all spoke at "The B-Word," a well-attended bitcoin conference.
Musk stated that as more bitcoin mining shifts to renewable energy, Tesla would likely resume taking bitcoin for vehicle purchases. Tesla halted cryptocurrency vehicle purchases in May, citing concerns over the "rapidly expanding use of fossil fuels for bitcoin mining."
The energy-intensive process of creating new bitcoins, which includes solving complicated math problems, is known as bitcoin mining. The processing power necessary for this uses a significant amount of energy.
"The Chinese trading day has started, and the Elon/Jack/Cathie chat was highly bullish," said Luxor Mining's Alex Brammer.
Other bullish headlines for bitcoin have appeared. Amazon is trying to hire a digital currency and blockchain expert for its payments division, implying that it is looking into bitcoin and other cryptocurrencies more closely. Amazon is "excited by the innovation happening in the cryptocurrency area and are exploring what this may look like," according to an Amazon spokeswoman.
According to bitcoin mining expert Brandon Arvanaghi, these bullish actions have also contributed to a so-called "short squeeze."
Short sellers gamble that the price of bitcoin will continue to decrease. However, if the price rises, these investors will attempt to cut their losses and quit their short positions, causing the price to rise even more.
"Over-leverage shorts," said Luno's Ayyar, "probably drove the size of the surge."
Meanwhile, some of the problems that have been weighing on bitcoin's price are starting to fade. China has stepped up its anti-cryptocurrency assault in recent months, focusing on mining and trade. Concerns about bitcoin mining's carbon footprint are also starting to fade.
According to Luxor Mining's Brammer, the ambiguity around mining's environmental impact and Chinese regulatory worries have "worn off."