Bitcoin has climbed back above US$40,000 ($51,000) overnight, indicating that the cryptocurrency market has stabilized.
Even so, since its height in mid-April, the world's largest digital currency has lost more than 30% of its market capitalization.
The crypto sector as a whole seems to be battered as well.
Several digital currencies have already lost double-digit percentages of their value since the recent turmoil.
And the bloodletting in the crypto world serves as a stark warning: invest at your own risk.
According to CoinMarketCap reports, the global cryptocurrency industry has lost more than 30% of its overall market value since May 12.
The global crypto market cap had dropped to nearly $2.3 trillion this morning, down from more than $3.2 trillion only a week ago.
The sharp selloff this week followed China's crackdown on cryptocurrencies.
As a result, Bitcoin fell to just above $38,700, with digital currencies selling off across the board.
On CNN Business's digital live show Markets Now, William Quigley, managing director of crypto-focused investment fund Magnetic, said that investors shouldn't be shocked by the uncertainty.
Mr Quigley pointed out that cryptos are still a relatively new asset, and therefore much less predictable than more conventional investments.
"Remember that we all want to concentrate on the day-to-day, week-to-week. However, most people do not buy cryptocurrencies or even stocks in this manner "Mr. Quigley explained.
Meanwhile, Vitalik Buterin, the co-creator of Ethereum, told CNN Business that he thinks cryptocurrencies are in a bubble.
It's also difficult to predict when bubbles would burst.
However, even after accounting for the recent rout, Ethereum and joke-turned-crypto Dogecoin have increased in value by nearly 290 percent and more than 8000 percent, respectively, since the start of the year.
There are ups and downs.
If it was a bubble or not, the crypto market seemed to be on the mend today.
In a note, Fawad Razaqzada, a market analyst at ThinkMarkets, said, "The bigger the drop, the higher the bounce."
Bitcoin is up 18% today, and it was trading at more than $54,000.
Ethereum increased by 22% to about $3700.
"However, if the rebound will last remains to be seen," Mr. Razaqzada added.
"Cryptos will likely remain volatile for a while as speculators weigh the effect of China's ban and Tesla's U-turn against recent institutional interest development."
Tesla, which reported a $1.9 billion investment in bitcoin in February and said consumers might use it to pay for its cars with it, reversed that decision last week, citing bitcoin mining's environmental effects.
Institutional investors are pivoting out of cryptos and back into gold, according to JPMorgan strategists, though the reason for this is unclear.
According to Coindesk numbers, Bitcoin has increased by more than 40% in that time period.
