Bitcoin has been flirting with the $US30,000 ($AU39,000) mark for weeks, and finally passed that record-setting level Saturday.
The virtual currency is now valued at above $US33,000 ($AU43,000), an all-time high.
Bitcoin (XBT) has tripled in value during 2020, growing steadily even as the stock market plunged in the early days of the pandemic. Investors have been drawn to it, as well as other cryptocurrencies, as the US dollar has weakened.
With the US Federal Reserve expected to leave interest rates near zero for several more years, bitcoin may continue to win new fans.
Well-known names are adding to bitcoin’s mainstream appeal. Rick Rieder, the chief investment officer of fixed income BlackRock (BLK), has said the digital currency could replace gold.
It soared past $US20,000 in December, climbing rapidly in the past month.
But Bitcoin experts remain bullish on the currency.
“When any asset climbs in price this fast for an extended period of time I become cautious, and I’d urge anyone trading BTC to not get caught up in the euphoria,” said Nicholas Pelecanos, head of trading at cryptocurrency firm NEM, who nevertheless predicts bitcoin could rise to $US50,000 by Valentine’s Day.
“I believe we are just at the beginning of what will be an immense bull market.”