The digital currency Ether hit a record Monday a day after Bitcoin first surpassed $ 34,000 as the rise in cryptocurrencies continues.
Ether hit a high of around $ 1,010, its first foray past $ 1,000, after a 30% rise on Sunday. Bitcoin retained most of its weekend gains, declining about 1.5% from 10:40 a.m. on Monday in Tokyo to $ 33,069. The largest cryptocurrency eclipsed its 2017 record late last year, hitting just $ 20,000 for the first time in mid-December.
Proponents of Bitcoin claim it is leveraging gold as a hedge against US dollar weakness and inflation risk, citing evidence of growing interest among institutional investors. Skeptics see the over 300% rise of the digital asset in the past year as a risky bubble fueled by investors chasing the momentum in cryptocurrency prices.
“The drivers of the crypto rally are getting stronger, if possible, amid still low interest rates, political uncertainty,” and the prospect of more government stimulus, Julian Emanuel, chief equity and derivatives strategist at BTIG LLC, said in an email. But he added that volatility can work both up and down.