Bitcoin and ether prices continued to climb on Wednesday, clawing back some of the steep declines over the holiday weekend that were sparked by China’s ban on initial coin offerings. Last weekend, Chinese regulators declared initial coin offerings illegal and sparked selloffs in digital currencies, sending bitcoin down 13% and ether down 23%. However, buying over the past two days suggests that there is enough risk appetite to push the prices higher. On Wednesday, one bitcoin BTCUSD, +5.58%...

Getty Images The two most highly valued digital currencies pared earlier losses Tuesday, though still remain well below recent all-time highs. A single bitcoin BTCUSD, -0.37% was most recently up 0.4% on the day at $4,073.60, but the virtual currency had been pushed into correction territory in early trade, defined by technical analysts as a 10% or greater fall from a recent peak in an asset. Bitcoin had been as low as $3,687 earlier on the day, which would represent a 16.7% decline from its...