Bitcoin rally takes crypto market value to another record | Deccan Herald

Billionaire Elon Musk posted tongue-in-cheek tweets about Dogecoin stirring buying that drove its market capitalization past $6 billion

Bitcoin, the largest cryptocurrency, is up about 24% this week. Representative image/Credit: Reuters PhotoBitcoin, the largest cryptocurrency, is up about 24% this week. Representative image/Credit: Reuters Photo

By Eric Lam,

Bitcoin topped $40,000 in a rally that helped the market value of digital tokens scale a new peak.

The largest cryptocurrency rose as much as 7.4% to $40,498 on Saturday, taking it closer to early January’s all-time high of almost $42,000. The value of more than 6,000 tokens tracked by CoinGecko hit about $1.23 trillion.

The jump comes after another volatile week in cryptocurrencies marked by Elon Musk’s support for Bitcoin and a record runup in Ether, the second-largest token. Billionaire Musk also posted tongue-in-cheek tweets about Dogecoin — a Shiba Inu-themed unit that began as a joke — stirring buying that drove its market capitalization past $6 billion.

ur welcome pic.twitter.com/e2KF57KLxb

— Elon Musk (@elonmusk) February 4, 2021

Much wow!

— Elon Musk (@elonmusk) February 6, 2021

The future currency of Earth

— Elon Musk (@elonmusk) February 6, 2021

Read: Jokes abound as Musk helps fuel rise of crypto dogecoin

The developments provide more evidence of the way the casino-like gyrations of digital coins are seeping into the mainstream. High-profile proponents of Bitcoin like Musk say it’s winning broader acceptance in the finance community. Regulators, meanwhile, are stepping up warnings of volatility that could wipe investors out.

“Investor perception is at an all-time high at both the retail and hedge fund levels,” said Jehan Chu, managing partner with blockchain advisory firm Kenetic Capital in Hong Kong.

Also Read: What can you actually buy with bitcoin?

Even so, many investors still view digital coins as a treacherous sector. That was underlined in the U.S., where the 24-year-old founder of two New York-based cryptocurrency hedge funds with more than $100 million in investments pleaded guilty Thursday to securities fraud.

Bitcoin, the largest cryptocurrency, is up about 24% this week. The token may be consolidating before heading toward $50,000, which would imply a market value of about $1 trillion, said Mike McGlone, commodities strategist with Bloomberg Intelligence.

Meanwhile, Ether’s eightfold rally over the past year faces possible turbulence from the impending launch of CME Group Inc. futures next week. The contracts may open the door for bearish investors. The digital coin was at $1,683 as of 11:58 a.m. in London on Saturday.

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