Major digital currencies edged higher on Monday as tether, a controversial token designed to be pegged to the U.S. dollar, fell more than 2 percent.
The price of bitcoin, ether and XRP — collectively the three biggest cryptocurrencies by market value — rose by around 7 percent higher, according to data from industry website CoinMarketCap. Bitcoin was within touching distance of $7,000 at around 8 a.m. London time.
The rise in virtual currency prices follows a sharp downturn last week, where the market shed billions of dollars in market capitalization, in tandem with a two-day sell-off in global stock markets.
Tether, a token that its creators claim is 100 percent backed by fiat currency reserves, was seen trading 2.5 percent lower at $0.965 Monday morning. Earlier in the morning, the digital asset fell to around 93 cents.
The firm behind it, Tether Limited, has come under scrutiny over whether it actually holds enough reserves to match the amount of tether tokens in circulation — Tether claims it does.