Monday's bitcoin rally could encourage digital-asset inflows because many investors have been on the sidelines since the sell-off in May.
BTC drawdowns have occurred every month since the start of this year but most ended with sharp recoveries, achieving newer highs in the following month.
PayPal co-founder Peter Thiel's VC firm reportedly made hundreds of millions by putting $15 million to $20 million down on bitcoin last year.
The bitcoin price continues to trade well above the $250 mark as trading volumes grow on global exchanges including Bitfinex and Huobi.