Bitcoin's price rose on Monday after a brutal sell-off that saw the virtual currency briefly dip below $30,000. Meanwhile, ether — the world's second-biggest cryptocurrency — hit a fresh record high.
Bitcoin rose more than 7.4% in the last 24 hours to trade around $34,807, according to data from CoinDesk, looking to recover from steep losses last week that wiped out more than $100 billion from the entire crypto market.
Ether, the digital token of the Ethereum blockchain, notched a new all-time high of $1,476 early Monday morning. The cryptocurrency climbed 6.2% to a price of $1,415 at about 9:15 a.m. ET.
Altcoins, or alternative cryptocurrencies, have been known to rally in times of strength for bitcoin. Ether's latest price movement was attributed to increased use of Ethereum — its underlying network that is undergoing a major upgrade — and interest from institutional investors in crypto.
"Ethereum's current rise cold shoulders the sceptics, many of whom were quick to denounce crypto when bitcoin recently fell from its $40,000 high," said Simon Peters, cryptoasset analyst at online investment platform eToro.
"With a whole range of logistical improvements to the Ethereum network in the works, increased institutional inflows, and more and more developers building on the platform, the future is bright for Ethereum. I believe that a price of $2,500 by the end of the year is very feasible. As with all crypto, however, there will be bumps along the way."
Bitcoin, the world's largest cryptocurrency by market value, has had a wild start to 2021. After quadrupling last year, bitcoin's price briefly topped $40,000 for the first time on Jan. 7. It's down 17% from its all-time high, but still up over 17% since the start of the year.
Advocates of the digital coin say it's benefited from heightened institutional demand and its perception as a safe haven asset similar to gold. But skeptics are worried bitcoin is in a bubble.
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