Tesla’s decision may be “a catalyst for other companies to go that route,” said Julius de Kempenaer, senior technical analyst at StockCharts.com, adding a new bull run is underway in the token.
A rally was also evident in Bitcoin futures, suggesting shorts are throwing in the towel and signaling traders won’t fight the crypto advance. The wider Bloomberg Galaxy Crypto Index, which includes Bitcoin, Ether and three other tokens, jumped to a record.
Japanese and South Korean cryptocurrency-exposed stocks rose, tracking a rally in their U.S. and European peers.
Proponents cite backing from the likes of Musk and signs of interest from long-term investors as evidence of a durable rally. They also envisage a role for the token as a hedge for risks such as faster inflation, akin to gold.
Others continue to see speculators at work and are reminded of the 2017 boom that turned to bust. The token is designed to have a fixed supply of 21 million coins, underpinned by a digital ledger distributed across computer networks.
Bitcoin has more than quadrupled over the past year. Commentators have cited day traders, wealthy buyers, hedge funds, companies and even signs of interest from usually staid investors like insurers for the climb.