The digital currency Ether hit a record on Monday, a day after Bitcoin first breached $ 34,000 as cryptocurrency growth continued.
Ether hit a high of about $ 1,010, the first foray of more than $ 1,000, after a 30% increase on Sunday. Bitcoin kept most of its weekend gains, down about 1.5% from 10:40 a.m. Monday in Tokyo to $ 33,069. The largest cryptocurrency eclipsed its 2017 record at the end of last year and hit just $ 20,000 for the first time in mid-December.
Bitcoin supporters claim that it treats gold as a hedge against the weakness of the US dollar and the risk of inflation, citing evidence of growing interest among institutional investors. Skeptics see the increase in digital assets by more than 300% in the last year as a risky bubble fueled by investors following the momentum of cryptocurrency prices.
“Cryptographic rally leaders, if anything, are consolidating amid still low interest rates, political uncertainty” and the prospect of greater government stimulus, said Julian Emanuel, chief strategist of equities and derivatives, in an email. the BTIG LLC. However, he added that volatility can work both positively and negatively.