Others take a different view, contending that demand from institutional investors and companies is set to expand, driving further gains.
There are a number of reasons why Bitcoin is soaring, but what stands out most is the trend that MicroStrategy started and Tesla popularised: moving institutional balance sheets into Bitcoin to hedge against inflation, said Nicholas Pelecanos, head of trading at NEM.
[More: Fintechs push Bitcoin trading onward and upward: Fidelity]
Activity in Bitcoin futures suggests traders dont see a sudden end to the crypto rally, with spreads continuing to widen between the active contract and March futures, according to data compiled by Bloomberg.
Shares of Asian crypto-linked companies are advancing too. Japans Monex Group Inc. jumped 11% to hit a 13-year high, while BC Technology Group Ltd. in Hong Kong closed at a record.
JPMorgan Chase & Co. strategists said Bitcoins volatility needs to ease to prevent its rally from fizzling. Other commentators see a mania likely to end in a bust akin to the implosion in 2017.
The digital coins 60-day realized volatility is around the highest since May last year, though still below the levels seen around the peak of its last boom some three years ago.
[More: Canadian Bitcoin ETF turns up heat on U.S. fund managers, regulators]
The post Bitcoin exceeds $51,000 for first time appeared first on InvestmentNews.
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