Bitcoin breaks above $40,000 as market rallies

'Bitcoin prices continue to recover from their recent hangover,' said one expert. Photo: Getty Images

Cryptocurrencies are continuing to recover from the weekend sell-off, with bitcoin crossing the $40,000 (£28,258) mark. It still remains far from its record-high of $63,000 though, which it hit earlier this year.

Bitcoin (BTC-USD) was up 4.2% to trade at $40,500 on Wednesday morning. Ethereum (ETH-USD), the second-biggest cryptocurrency by market cap, was up roughly 9.4%, trading at $2,896. Joke token dogecoin (DOGE-USD) rose 1.1% to trade at $0.36.

"Bitcoin prices continue to recover from their recent hangover," said Naeem Aslam, chief market analyst at Ava Trade.

"The fact is that bitcoin was due for a correction, and it seems like the sell-off may be over now."