Rebound: Bitcoin rises after volatile crypto swing

The digital token rose as much as 7 percent on Wednesday, climbing to near $50,000 after sinking 13 percent on Tuesday.

Bitcoin rebounded from its sharp selloff of the past few days as additional purchases by MicroStrategy Inc. and Square Inc. helped to ease concern investors were starting to exit the famously volatile cryptocurrency. The digital token rose as much as 7% Wednesday, finding support near the $50,000 level. It traded around $49,860 as of 12:51 p.m. in New York. Prices plummeted about 13% on Tuesday in the worst retreat in a year. Square said it had purchased $170 million in Bitcoin, raising its holdings to about 5% of the company’s cash and equivalents. MicroStrategy said it paid an average $52,765 for nearly 20,000 tokens last week after issuing $1.05 billion in convertible bonds.