The price for the digital currency bitcoin is recovering after suffering a massive drop last week.

Bitcoin was trading at $3,964 Monday afternoon, according to CoinDesk, recovering 34 percent from Friday's low of $2,951.15, its lowest since early August.

Bitcoin lost about 14.7 percent last week, extending a sharp drop since briefly topping $5,000 in early September.

The recent fall was triggered by several factors. Some large bitcoin exchanges in China announced plans to close by the end of the month as China cracked down on digital currencies and banned any new initial coin offerings as a way of raising funds.

Bitcoin also took a hit last week after JPMorgan CEO Jamie Dimon criticized it as a fraud and compared the popularity of virtual currencies to the tulip bulb mania of the 17th century.

The bitcoin market is recovering because investors are getting over the initial shock and realizing that China no longer dominates the market.