Bitcoin rose to a new record on Tuesday, with the cryptocurrency lurching higher in European hours.
rose as high as $63,158 continuing the breakneck growth that has taken one-year gains to over 800%.
The rise comes as the Labor Department reported U.S. consumer prices jumped 2.6% year-over-year in March. More important may be Wednesday’s initial public offering of Coinbase, the cryptocurrency exchange, which lends still more official credence to the sector.
Jim Cramer, the CNBC commentator, tweeted the bitcoin rally may impact the Coinbase pricing.
Peter Tchir, a strategist at Academy Securities, said escalating tension between Russia and Ukraine may also be playing a role. “In countries like Russia, where the wealth is heavily concentrated, the ‘insiders’ may well know what is happening ahead of time and are positioning their portfolios accordingly (we’ve seen evidence of that with China, Turkey and Venezuela, in the past),” he said.
Not everyone’s a bitcoin bull — a Bank of America survey of global fund managers found 74% saying bitcoin was in a bubble.