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Bitcoin breaks above $19,000 and approaches record highs as cryptocurrency frenzy continues

Ben Winck   

Bitcoin breaks above $19,000 and approaches record highs as cryptocurrency frenzy continues
Stock Market2 min read
  • Bitcoin soared above $19,000 on Tuesday for the first time in nearly three years, bringing the cryptocurrency within spitting distance of its 2017 record.
  • The price of Bitcoin jumped as much as 3.3%, to $19,272.21, through the morning.
  • Cryptocurrencies have garnered new interest from both Wall Street and Main Street in recent weeks as companies and traditional investors embrace digital tokens.
  • The rally lifted other popular cryptocurrencies including Ethereum and Ripple.
  • Watch bitcoin trade live here.

Bitcoin jumped above $19,000 on Tuesday for the first time since 2017 as Wall Street and Main Street rekindled their interest in cryptocurrencies and extended the digital token's rally.

The world's most popular cryptocurrency surged as much as 3.3% through the morning to an intraday high of $19,272.21. The gains brought Bitcoin just a hair below its all-time high of $19,783 reached in December 2017.

Cryptocurrencies have garnered attention in recent weeks as companies and traditional investors accept their uses. Square bought $50 million worth of bitcoins in October, saying it sees potential for the token to become "a more ubiquitous currency." Soon after, PayPal announced it would soon let its users buy and sell cryptocurrencies. The news pushed Bitcoin above $13,000 and sparked speculation about whether the coin's latest rally had the legs to bring it to new highs.

Read more: Morningstar's top stock pickers say these are the 10 highest-conviction stocks they recommend — and which top fund managers recently piled their money into

Some of Wall Street's biggest names have also backed the rally. Rick Rieder, BlackRock's chief investment officer, said Friday that Bitcoin was "here to stay" because of millennials' interest in digital payments. Stanley Druckenmiller said on November 9 that he had "warmed up to the fact that bitcoin could be an asset class that has a lot of attraction."

Others are skeptical about the run. Ray Dalio said last week that he "might be missing something about bitcoin," adding that its volatility diminishes its use as a store of wealth and a medium of exchange.

Read more: MORGAN STANLEY: Buy these 4 undervalued aerospace stocks that will each surge at least 20% in 2021

Even if Bitcoin maintains its lofty value, it can't replace central-bank currencies, because governments are likely to ban the token "and make it too dangerous to use," Dalio tweeted.

The Tuesday surge lifted other popular cryptocurrencies. Ether gained as much as 4.3%, to $622.73. XRP spiked 54.7%, to $0.79, at intraday highs.

Bitcoin traded at $19,235.79 at 8:25 a.m. ET, up 166% year-to-date.

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