The digital currency Ether hit a record high on Monday, the day after Bitcoin breached $ 34,000 for the first time, while the rise in cryptocurrencies continues.
Ether hit a high of about $ 1,010, its first push beyond $ 1,000, after a 30% increase on Sunday. Bitcoin maintained most of its weekend earnings, dropping around 1.5% as of 10:40 am on Monday in Tokyo, to $ 33,069. The largest cryptocurrency surpassed its 2017 record at the end of last year and reached just $ 20,000 for the first time in mid-December.
Bitcoin supporters argue that it is using 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 more than 300% rise in digital assets in the past year as a risky bubble fueled by investors looking to boost cryptocurrency prices.
“The drivers of the cryptographic rally, if anything, are strengthening amid still low interest rates, political uncertainty” and the prospect of further government stimulus, Julian Emanuel, chief stock and derivatives strategist at BTIG LLC, said by email. But he added that volatility can work for both the positive and the negative side ”.