The cryptocurrency bitcoin jumped to $33,834 on Sunday at around 4 p.m., according to CoinGecko, after hitting $30,000 for the first time in its history the day before.
“Bitcoin’s rise isn’t surprising in the least — it’s been a buildup of credibility and sustainability, with strong network effects,” said Dave Balter, the CEO of Flipside Crypto, in an email to TheStreet on Sunday.
The world of institutional finance “has finally taken notice” of crypto, added Balter, whose firm posts regular columns in TheStreet.
“No one wants to be last to the dance,” he added.
The move up over the New Year’s weekend comes after a mid-December high that topped $20,000. Bitcoin has more than tripled in value over the past year, and was up 26.6% over just the past seven days.
When asked if the surge in bitcoin could lead to the increase in value of other crypto projects such as ethereum and litecoin — which were both up on Sunday — Balter said it was likely that this rising tide could lift all boats.
“Bitcoin does tend to create a ‘wake’ for other crypto assets to follow, so my strong belief is you’ll see rise in prices from a number of quality projects.”
Some financial experts have suggested that one reason why bitcoin has seen a dramatic hike in value is the uncertainty created by recent high-profile cyber hacks and the Covid-19 pandemic.
The cryptocurrency, which is now about a dozen years old, has also gained widespread mainstream attention recently, as big players such as PayPal (PYPL) – Get Report and Visa (V) – Get Report have begun offering crypto services and more and more online retailers accept the currency.
Balter also notes big momentum toward the end of last year for the crypto currency, including the crypto exchange Coinbase’s progress toward an initial public offering, SkyBridge Capital’s launch of a bitcoin fund, and words of confidence in the currency by advisers such as Ric Edelman.
Despite the holiday jump in value, the Grayscale Bitcoin Trust (GBTC) had closed down on Thursday to around $32, though it too had surged year-to-date by more than 270%.
This story has been updated.