It seems that cryptocurrencies never get boring. Of late, Elon Musk’s support for Bitcoin and a record surge in ether have helped push the market value of digital tokens to an all-time high.
Billionaire Musk also posted hilarious tweets about Dogecoin – a Shiba Inu-themed unit that started as a hoax – and encouraged the buy, which pushed its market cap over $ 6 billion. More than 6,000 tokens tracked by CoinGecko were valued at an unprecedented $ 1.17 trillion on Thursday.
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The developments provide more evidence of how the casino-like movements of digital coins are penetrating the mainstream. High profile Bitcoin proponents like Musk say it is gaining wider acceptance in the financial community. Meanwhile, regulators are increasingly warning of volatility that could wipe out investors.
“Investor perception is at an all-time high at both the retail and hedge fund level,” said Jehan Chu, managing partner of blockchain advisory firm Kenetic Capital in Hong Kong.
Even so, many investors still view digital coins as a treacherous sector. This was underscored in the United States, where the 24-year-old founder of two New York-based cryptocurrency hedge funds with investments of more than $ 100 million pleaded guilty to securities fraud on Thursday.
Bitcoin, the largest cryptocurrency, is up 15% this week while ether is up 26%. Bitcoin was around $ 37,400 in Tokyo at 1:30 p.m. on Friday.
The token could consolidate before heading for a record $ 50,000, which would translate into a market value of about $ 1 trillion, said Mike McGlone, commodities strategist at Bloomberg Intelligence.
Ether’s eight-fold rally last year is faced with potential turbulence from the upcoming launch of CME Group Inc. futures next week. The contracts can open the door for bearish investors. The digital coin was trading at $ 1,636 after a high of nearly $ 1,700 on Thursday.
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