Cryptocurrencies rebounded on Monday, reclaiming ground lost during a bout of weekend selling that was fuelled by further signs of a Chinese crackdown on the emerging sector.

Bitcoin was last up 8.8% to $37,766, erasing losses of 7.5% from a day earlier but still down by more than 40% from last month’s record high.

Second-largest cryptocurrency ether jumped more than 17% to as high as $2,459 after slumping more than 8% on Sunday to near a two-month low. Yet it too has fallen by almost half from a peak hit earlier this month.

In the past week policymakers have stepped up their response to the popularity, and volatility, of cryptocurrencies. On Monday Federal Reserve Governor Lael Brainard told a virtual conference organized by CoinDesk that the growth in “private money,” digital payments and steps by other central banks were sharpening the focus on Central Bank Digital Currencies (CBDC.)

While her comments did not cause much of price move, she did say that the wide use of private money poses consumer and stability risks given possible “run-like behavior.”

The catalyst for the
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