Bitcoin worth rises because the second largest cryptocurrency ether hits all-time excessive

Ethereum and Bitcoin coins.

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Bitcoin’s price soared on Monday after a brutal sell-off that briefly saw the virtual currency drop below $ 30,000. In the meantime, ether – the second largest cryptocurrency in the world – hit a new record high.

Bitcoin rose more than 7.4% in the past 24 hours and was trading at $ 34,807, according to data from CoinDesk. The company wanted to bounce back from last week’s heavy losses that wiped more than $ 100 billion from the overall crypto market.

Ether, the digital token on the Ethereum blockchain, hit a new all-time high of $ 1,476 early Monday morning. The cryptocurrency rose 6.2% to a price of $ 1,415 around 9:15 a.m. ET.

Altcoins, or alternative cryptocurrencies, are known to rise during times of strong strength for Bitcoin. The recent price movement of Ether has been attributed to increased use of Ethereum – the underlying network that is currently undergoing significant improvements – and institutional investors’ interest in crypto.

“The current rise of Ethereum has brought skeptics to their knees, many of whom were quick to denounce crypto when Bitcoin recently fell from its $ 40,000 high,” said Simon Peters, cryptoasset analyst at online investment platform eToro.

“With a slew of logistical improvements to the Ethereum network in the works, increased institutional inflows and more and more developers building on the platform, the future is bright for Ethereum. I believe the price will be $ 2,500 by the end of the year is very doable. As with any crypto, however, there will be bumps along the way. “

Bitcoin, the world’s largest cryptocurrency by market value, got off to a wild start into 2021. After quadrupling last year, Bitcoin price briefly exceeded $ 40,000 for the first time on Jan. 7. It’s down 17% from its all-time high, but it’s still up over 17% since the start of the year.

Proponents of the digital coin say it has benefited from increased institutional demand and its perception as a safe haven similar to gold. But skeptics are concerned that Bitcoin is in a bubble.

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