The cryptocurrency bitcoin jumped to $ 33,834 on Sunday around 4 p.m., according to CoinGecko, after hitting $ 30,000 for the first time in its history the day before.
“The rise of Bitcoin is not at all surprising – it has been an accumulation of credibility and sustainability, with strong network effects,” said Dave Balter, CEO of Flipside Crypto, in an email to The street on Sunday.
The institutional finance world “has finally taken notice” of crypto, added Balter, whose company columns regularly in The street.
“No one wants to be the last to dance,” he added.
The hike over New Years weekend comes after a mid-December high that exceeded $ 20,000. The value of Bitcoin has more than tripled in the past year and has risen 26.6% in the past seven days.
When asked if the bitcoin surge could lead to an increase in the value of other crypto projects such as ethereum and litecoin – both of which were up on Sunday – Balter said that this tide was likely ascending can lift all boats.
“Bitcoin tends to create a ‘wake’ for other crypto assets to follow, so my belief is that you will see price increases from a number of quality projects.
Some financial experts have suggested that one of the reasons bitcoin has seen a dramatic rise in value is the uncertainty created by recent high profile cyber hacks and the Covid-19 pandemic.
Cryptocurrency, which is now around a dozen years old, has also recently gained the attention of the general public, as big players such as PayPal. (PYPL) – Get the report and Visa (V) – Get the report have started offering crypto services and more and more online retailers are accepting currency.
Balter also notes great momentum towards the end of last year for the cryptocurrency, including the progress of the Coinbase crypto exchange towards an initial public offering, SkyBridge Capital’s launch of a bitcoin fund and the words of confidence in the currency by advisers such as Ric Edelman.
Despite the holiday’s jump in value, the Grayscale Bitcoin Trust (GBTC) had closed Thursday at around $ 32, although it has also jumped over 270% since the start of the year.
This story has been updated.